Will Verizon Borrow Billions to Become the Biggest?

By Doug Ehrman – May 5, 2013 at 9:00AM

NYSE: VZ

Verizon Communications

Market Cap

$165B

Today's Change

(-0.68%) -$0.27

Current Price

$39.22

Price as of April 25, 2024, 4:00 p.m. ET

If Verizon Wireless becomes a solely owned entity, it will be the largest carrier in the U.S., but are the funds there to conclude the deal?

As discussions intensify over the joint ownership of Verizon Wireless by both Vodafone (VOD -0.58%) and Verizon Communications (VZ -0.68%), and the potential buyout by Verizon Communications, the specifics of the deal continue to garner attention. While the complete takeover would make Verizon the largest phone carrier in the United States, beating out current leader AT&T (T -1.37%), there are issues for the company that are important for investors to consider. To complete the deal, Verizon will need to raise debt capital and must contend with a premium price.

In the following video, Fool.com contributor Doug Ehrman discusses the overall structure of the transaction and considers the pros and cons for Verizon.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Vodafone. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.