Vodafone may take over Verizon in deal

Verizon and Vodafone are considering a shift in ownership that could shake up the cellphone industry, a rumor claimed this morning. While Vodafone already owns a stake in Verizon, the two are aiming to change the financial relationship and may include anything from a dividend payout to either a complete spinoff of Verizon or even a full acquisition of the American carrier by Vodafone. A BusinessWeek tipster said a decision isn't yet close and may hinge on Verizon paying off its debts from taking over Alltel last year.

Some analysts believe a Vodafone buyout of Verizon is most likely as it would help the company unify services and potentially eliminate the debt sooner.

Either of the changes in ownership levels would have a major impact on the cellular industry. A fully independent Verizon would no longer necessarily need to synchronize its plans with a European partner and could make world phones that more readily support other networks, such as Orange or O2. Vodafone taking over Verizon in turn would put a second major European carrier in the US and could lead to more harmonized device releases.

By Electronista Staff