Filing Flows › Verizon Communications (VZ) › Takeover & LBO
Is Verizon Communications (VZ) a takeover target?
A leveraged buyout at today's price plus 30% ($60.01 a share) would return about 14% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $48.04 a share (4% against today's $46.16). At $404.7B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 2.9% of companies with its figures were bought within a year (0.57× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $60.01 | today's $46.16 plus 30% |
| × shares | 4,161.0 million | |
| = Equity value | $249.7B | |
| + Debt refinanced | $158.2B | |
| − Cash | $4.5B | |
| + Other claims | $1.3B | preferred stock, minority interests |
| = Enterprise value | $404.7B | 8.3× EBITDA of $48.6B |
| Fees | $8.1B | 2% of the price |
| New debt | $263.0B | 5.4× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $149.7B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $141.3B | $49.3B | $20.1B | $26.8B | $236.3B |
| Year 2 | $143.8B | $50.1B | $18.1B | $29.1B | $207.2B |
| Year 3 | $147.0B | $51.2B | $15.9B | $31.6B | $175.6B |
| Year 4 | $150.8B | $52.6B | $13.4B | $34.6B | $141.0B |
| Year 5 | $155.3B | $54.1B | $10.8B | $37.9B | $103.1B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $386.7B | |
| − Debt left | $103.1B | |
| = Buyer's equity | $283.6B | |
| Money multiple | 1.89× | on $149.7B put in |
| Buyer's yearly return (IRR) | 13.6% |
Price against return
What the buyer makes at other premiums over today's $46.16; the IRR reaches 20% at $48.04 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $50.78 | 18.5% |
| 20% | $55.40 | 16.1% |
| 30% | $60.01 | 13.6% |
| 40% | $64.63 | 11.0% |
| 50% | $69.25 | 8.5% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $139.4B | |
| EBITDA, last 12 months | $48.6B | 34.9% of revenue |
| Depreciation and amortization | $19.5B | |
| Debt | $158.2B | |
| Cash | $4.5B | |
| Share price | $46.16 | on Nov 5, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 1.4% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 23% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Verizon Communications would cost about $61.17 a share, $254.5B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $55.40 | $230.5B |
| Median | 32.5% | $61.17 | $254.5B |
| High end (a quarter paid more) | 51.8% | $70.08 | $291.6B |
The odds, from history
Historically 2.9% of companies with its figures were bought within a year (0.57× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Verizon Communications' latest quarter
Verizon Communications, Q3 2026: revenue $34.3B (+2% year over year), operating margin 25.2%, net earnings $5.2B, operating cash flow $11.5B. The chart follows the revenue to costs, profit and cash.
Questions
Is Verizon Communications being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Verizon Communications?
A leveraged buyout at today's price plus 30% ($60.01 a share) would return about 14% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $48.04 a share (4% against today's $46.16). At $404.7B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Verizon Communications cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Verizon Communications would cost about $61.17 a share, $254.5B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.