Listen, Verizon Wireless: Let’s make one thing clear — even if mommy and daddy break up, it’s not your fault. Actually, it would be but that’s just business. Verizon Communications and Vodafone have a joint venture in Verizon Wireless as it stands right now, but they’re trying to figure out whether to just merge or end the whole arrangement.
Bloomberg News cites people familiar with the situation, who say the two companies are discussing whether to get hitched or not. Apparently the duo were in talks in December but ideas about a wedding hit obstacles like arguments over who would be in charge and where the newly formed company would live.
Those disagreements make it more likely that the two will split up, with Verizon buying all or part of Vodafone’s 45% stake in Verizon Wireless. That stake is worth about $115 billion. It’s not clear where Verizon Wireless would spend its summers and every third weekend.
If the two sides could make it to the altar after all these years together, it would be one of the biggest in history. The current record holder for largest corporate merger was Timer Warner’s combination with AOL in 2001.
For now any decision seems to be on hold as there aren’t any formal talks about a merger going on and Vodafone hasn’t negotiated what kind of terms it would sell its stake under. Neither company is commenting and Verizon Wireless has been instructed to just ignore the mean kids on the playground teasing it about its parents’ relationship problems.
Verizon Is Said to Seek to Resolve Vodafone Relationship [Bloomberg News]