Though Verizon Wireless and corporate half-parent Vodafone are finally
getting close to achieving technological synergy now that both are moving to
LTE for their next-gen networks -- and
contrary to recent statements -- rhetoric is heating up that suggests the marriage may not last forever. Speaking at an investor's get-together this week, Voda CEO Vittorio Colao said that "the board continues to look at" the company's investment in the joint venture with Verizon -- which we take as executive-speak for "everything's for sale for the right price." The popular rumor is that Vodafone's bummed about Verizon's failure to pay dividends for the past four years, which effectively means that Big Red isn't actively contributing to the wireless giant's bottom line. Verizon's made no secret of the fact that it'd love to
own the joint venture outright, so come on, guys... Verizon's got money, Voda's got the goods, let's sit down at that oaken conference table on the 45th floor and work this out.
posted Sep 17th 2009 1:06PM
Man, VZ even cripples their dividends!
what a asurprise u from victoria?
i go to uvic too matter fact im in the library now as im questioning how you comment on Verizon when it is a non-canadian company??
Sometimes Americans go to Canadian schools. Sometimes.
At least VZW doesn't discriminate on who they F over. Customers, part owners...whomever...
Sounds like corporate mumbo-jumbo scare tactics to get Verizon to kick some cash back their way.
You mean that Verizon Wireless sub 45% owed by Voda and 55% by Verizon is paying neither of it''s 2 shareholders?
The way you wrote it it sounds like the whole of Verizon is NOT paying dividends.
Holy crud... Verizon hasn't paid Vodafone in THREE YEARS. Usually phone companies are pretty good about ending things if the customers don't pay up, so why should this be any different?
If you read the article that Engadget links to it says they haven't paid in 4 years... but either way... wow.
Keep in mind, though, Verizon Wireless isn't paying any money to Verizon, either... the difference is since they have majority ownership, they get to put down VZW's revenue and profits on their balance sheet.
Looks like its time for Vodafone to divest in VZW and buy up Sprint.
Just sayin'
Since T-Mobile wants to take over Sprint, they are probably scared over their possible investment.
Hum! Dump the hot CT (Verizon) and date the Fat chick (Sprint). Both options suck! If only there was a redly available US GSM/LTE bound operator to "merge with". That would be the hotness for Vodafone. Unfortunately one is spoken for (T-mobile) and the other is a hot chick that has i-exclusivity, is world famous, making money and doing her own thang girlfriend (AT&T)...
My advice? Go for the fat chick and make her HOT! (i.e. dump the stupid CDMA/WiMAX and quick roll CDMA/LTE).
Maybe the reason Verizon isn't paying their dividends for so long is because they DO want Voda to consider pulling out of the picture. If Verizon wants Voda out, make it unattractive for them to stay in. I'm sure a legal battle wouldn't be worth it for Voda, so they might just let VZdub get their way. It's a brilliant idea; get the start up cash from someone, then make them not want anything to do with what you've just created. Pay them back what they're owed, and then make money forever off of the foundation you both built!
Of course, this is all guessing. I have no more knowledge beyond this and a couple of other articles.
Or how about Voda outright buys verizon. That would be freaking awesome.
they can't foreign companies aren't allowed to hold majority stakes i.e.
Wouldn't happen. Regulators would have a stroke over that much foreign control of US wireless spectrum. That's part of why Voda took the minority stake when Bell Atlantic/GTE/Airtouch and Voda all joined together to create VZ
but tmobile is foreign owned. Why would it be a problem for vodafone?
@Prince Ali:
IIRC, it's not an issue for T-Mobile because it is set up as a subsidiary of Deutsche Telekom, whereas as mentioned above, Voda buying Verizon outright (not VZW, but V itself) would be acquiring the parent company and setting off antitrust alarms.
I believe there are foreign ownership restrictions on landline networks- you know, like VZ's entire wireline business?
I think it is totally sad that they don't work toghther and build a crazy massive cell phone empire. Imagine if you can use your phone in between the USA and all the Voda countries w/o roaming and BS fees and have free mobile2mobile with all VZW/Voda Customers.
DONE... kiss all the other competition goodbye
Can't happen--Verizon's CDMA phones won't work on Vodaphone's GSM networks. LTE could put an end to that, but it won't be ubiquitous any time soon.
Voda & Sprint!
Why would Verizon want to buy Vodaphone out? They've got a majority stake. Why would they want to spend $60B to own what they already control?
Why get 55 cents when you can get the whole buck? Greed, pure, plain and simple. Yeah, I know it makes no sense, as even though they're only getting a portion, Verizon doesn't have to pay all the bills either, but when did logic ever come into play in corporate America?
dude, you said "long", "hard", and "stake" in the same sentence.
That's what she said!