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Vodafone buys out Three, taking 100% of Vodafone Three

PHK
PHK Posts: 2,594 Forumite
Ninth Anniversary 1,000 Posts Photogenic Name Dropper

According to the Financial Times, Vodafone is buying out Three's 49% of Vodafone Three for £4bn.

A clause in the contract gave them the right to do this after 3 years, so I don't know why they have gone early.

Apparently, nothing will change. But there are already rumours of 3 staff leaving head office.

Comments

  • brewerdave
    brewerdave Posts: 8,993 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Wonder if it will have any effect on the MVNOs that piggyback on "3" - specifically cost of rolling contracts.

  • PHK
    PHK Posts: 2,594 Forumite
    Ninth Anniversary 1,000 Posts Photogenic Name Dropper

    interesting question.

    The stated aim of this buyout is to crystallise savings of £700m by 2030. That can only happen by removing duplication.

    The agreement for the merger specified that VodafoneThree had to offer the same terms to existing MVNO for three years.


    But Smarty and Voxi are effectively just tariffs on their host. So there wouldn’t be anything stopping VodafoneThree from combining or ditching them.

    Once the three years are up then anything could happen.

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