Who Wins and Who Loses in Verizon, Vodafone Deal?

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Sept. 3 (Bloomberg) -- Cristina Alesci reports on Verizon's agreement to buy Vodafone's 45 percent stake in Verizon Wireless. She speaks on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Verizon yesterday announced it is forking over $130 billion to buy vodafone's stake in verizon wireless, giving them full control.

Cristina alesci is to tell us what the deal means for both companies and for wireless subscribers.

Who is really the winner in this deal?

It depends on who you ask, but depending on the reporting -- but based on the reporting i have done, vodafone got there price they wanted.

Verizon would say that it is a very strategically important asset.

From their standpoint, in the short term, they will get to book of the profits associated with verizon wireless, compared to 55% of the profits.

A boost to its earnings in the short term.

The long-term question is how they can compete with the likes of sprint, which could emerge as a strong competitor, given that they have this strategic investment from softbank.

It is not clear how one of her% ownership will help it become more than with the ceo wanted to become, which is essentially a pipe.

The rise in ceo wanted to be more of a wireless provider, but the question is how they will pull off.

What about vodafone?

Error getting $84 billion back to shareholders.

-- they are getting $84 billion back to shareholders.

They will also be reinvesting $9 billion over three years.

They also have some cash left over to potentially execute on some acquisition near home in europe.

Those last two things are things that other of wireless carriers are not able to do.

From the standpoint of vodafone, it seems like a pretty good deal.

Thank you, cristina alesci.

Staying on telecom, we are focusing on microsoft and its deal to buy nokia's smartphone and hansen business.

I want to bring in dick thompson.

You put it well in your note.

This text has been automatically generated. It may not be 100% accurate.


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