June 4, 2008
Verizon wants Alltel enough to pay $27 billion
Just off the heels of sewing up most of the 700 MHz spectrum, that big telco some of us like to refer to as Darth continues to expand his empire instead of investing his capital to better serve the territory he already controls. While the current customers of the dark helmeted one will do without 4G service for at least another 3-4 years, V is in talks to acquire Alltel. If successful, the Verizon empire will eclipse AT&T as the world’s largest.
While the details of the deal were still being worked out one person who asked not to be named said that the $27 billion valuation could be comprised of mostly debt and a smaller amount of cash. Alltel had $23.35 billion in long-term debt on its balance sheet at the end of the first quarter.
The ownership structure of Verizon Wireless — 55 percent owned by Verizon Communications Inc and 45 percent owned by Vodafone Group Plc — would not change under the deal the person said. (Reuters)
Comments on Verizon wants Alltel enough to pay $27 billion »
Dr. Dog @ 5:10 pm
Interesting. I suspect that VZ wants to buy them out because they hate the Alltel commericals.
Pretty bad timing I would say. Unless VZ has already capitulated to the unions, they just gave the unions another bargaining chip. I also find it interesting that VZ wants to take on the $23b of debt. They have been attempting to shed debt to keep their debt rating.
I will be interesting to see what Vodafone says about the deal.
admin @ 11:32 pm
Looks to me like a wireless turf battle is coming. Land lines are dying. The suits don’t get it, so the next place to run the outfit is in wireless.