Now the word is out, and we see that things went pretty well for Vodafone. Think about Verizon Wireless – what has happened, what changes? From Day One there are no more subscribers, no new technologies, no new business plans, no acquisitions. Nothing much changes for the daily operations of Verizon Wireless.
What has changed for the Verizon shareholders? $60B in new debt to service, though that is offset by new the new asset that comes at a slight premium. And also, there is share dilution from $60B in new issues. In an idea world, the added liabilities will offset the acquisition of assets. Only time will tell if this transaction is worthwhile. Vodafone can definitely say, “That was good for me.” But as for Verizon, it is too soon to tell.
Further insights can be had in the ABI Research Insight, Verizon Takes on Debt and Shareholder Dilution for Verizon Wireless (subscription required).