Verizon, Vodafone in Harmony

The Verizon Wireless partnership is settled for 'several years,' CEO Seidenberg says.
Publish date:

Verizon (VZ) - Get Report and Vodafone (VOD) - Get Report have agreed to continue their Verizon Wireless joint venture.

On an earnings conference call with analysts Tuesday, Verizon CEO Ivan Seidenberg said Vodafone CEO Arun Sarin was "pleased with their position in the partnership." The two met last week during Verizon's board meeting.

Speculation has been swirling for years that Verizon would have to pay billions to buy out Vodafone's 45% stake in the fast-growing cell phone service. But with Verizon's debt at $42.4 billion, the prospect of having to raise more cash to buy out its partner loomed as a concern among investors.

Seidenberg said he discussed with Sarin the long-term plan to profitably increase Verizon Wireless' overall market share. And Sarin apparently agreed with the strategy.

"The issue is pretty much resolved over the next several years," Seidenberg told analysts on the call.

Verizon shares were unchanged at $33.82 in premarket trading Tuesday.