Verizon pays $130bn to buy out Vodafone

Verizon has agreed to pay $130 billion to take full control of Verizon Wireless from U.K. partner Vodafone, the companies said Monday.

The deal will give Verizon (VZ, Fortune 500) 100% ownership of America's largest and most profitable wireless provider. In return for its 45% stake, Vodafone (VOD) will receive nearly $120 billion in Verizon stock and cash, plus Verizon's minority 23% stake in Vodafone Italy.

"Today's announcement is a major milestone for Verizon, and we look forward to having full ownership of the industry leader in network performance, profitability and cash flow," said Verizon chairman and CEO Lowell McAdam in a statement.
The deal, which will be one of the largest in corporate history, is expected to close in the first quarter of 2014. Vodafone paid a record $180 billion for Germany's Mannesmann in 2000.
Verizon (VZ, Fortune 500) had expressed desire in controlling all of Verizon Wireless for years, but talk that a deal was about to get done had increased over the past few months.
The wireless business is the only reason Verizon is growing: Landlines are dying, and the company has stopped building out its FiOS Internet and television infrastructure.