Why Verizon's Vodafone Deal Is Worth the $130 Billion Sticker Shock

After years of courting and proposals with unhappy endings, Verizon (VZ 1.51%) is finally taking charge of Verizon Wireless.

The company will pay $130 billion to wireless partner Vodafone (VOD 0.10%), buying out the British company's 45% stake in America's largest wireless network. Some 30% of Verizon will end up in the hands of Vodafone investors, and Verizon will take on nearly $60 billion in new debt as well.

That's a heavy toll, but it does come with a terrific payback. In the video below, Fool contributor Anders Bylund explains why Verizon investors should appreciate owning all of Verizon Wireless in the long run. Spoiler alert: Verizon stands to nearly double its operating cash flows.