AT&T Inc. executives are laying the groundwork internally for a potential takeover of Vodafone Group Plc next year, mapping out a strategy for a complex deal with Europe’s largest mobile carrier, people familiar with the situation said.
According to Bloomberg, AT&T is already “exploring strategies” to purchase the Europe’s largest mobile carrier, however the deal isn’t certain yet.
Bloomberg claims that the financial transaction couldn’t happen right up until 2014 and the point is: that’s when Vodafone will be free of its $130 billion stake in Verizon Wireless.
The publication also states that AT&T is also considering UK carrier EE as an “alternative target.” Nevertheless, it seems like Vodafone is AT&T’s main target.
Verizon and AT&T were rumored to team up on a bid for Vodafone, with Verizon retrieving Vodafone’s stake in Verizon Wireless, and AT&T taking over the company’s European business.
Bloomberg estimates that a combined AT&T/Vodafone would have a market capitalization exceeding US$250 billion and well over half a billion subscribers. AT&T would gain leverage over device OEMs and could generate new advertising and partnership deals and revenues with OTT (over the top) and content providers.
The global reshuffle of carriers, partly sparked by Verizon’s deal to buy Vodafone out of their mobile joint venture, continues to unfold. AT&T is still teasing the markets about its interest in Europe, while Vodafone looks set to use its Verizon windfall to bolster its position in markets where it already operates, such as India, rather than pursuing new ones like Brazil.
Photo Credit: monroe3743