After yesterday's mega-merger deal between AT&T and BellSouth, Verizon's response was that it was trying to purchase Vodafone's 45 percent stake in their Verizon Wireless JV. Verizon has been trying to scoop up its partner's share for some time now and increasing competition from the new(est) AT&T is only going to embolden Vodafone to hold out for more money. My guess is they'll sit on the deal for a few months and allow AT&T's strategies to unfold before giving in to a buyout--if they do at all. As many have noted, Verizon Wireless is extremely profitable and growing fast. Why should Vodafone sell it? Verizon is now in the hot seat, and although it's been obvious, announcing to the world your intent to buy out a partner's share is only going to add more to the eventual pile of cash Vodafone will walk away with.
For more on Verizon and Vodafone:
- see this article from Dow Jones