Why Verizon's Vodafone Deal Is Worth the $130 Billion Sticker Shock
The company will pay $130 billion to wireless partner Vodafone , buying out the British company's 45% stake in America's largest wireless network. Some 30% of Verizon will end up in the hands of Vodafone investors, and Verizon will take on nearly $60 billion in new debt as well.
That's a heavy toll, but it does come with a terrific payback. In the video below, Fool contributor Anders Bylund explains why Verizon investors should appreciate owning all of Verizon Wireless in the long run. Spoiler alert: Verizon stands to nearly double its operating cash flows.
Verizon is doubling down on an established market while Vodafone looks for cash to expand further overseas. But you can profit from the smartphone boom without picking one of these diametrically opposed strategies. One company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."
The article Why Verizon's Vodafone Deal Is Worth the $130 Billion Sticker Shock originally appeared on Fool.com.Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+. Motley Fool newsletter services have recommended buying shares of Vodafone. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.