According to CNBC, Verizon is in “deep talks” to acquire Alltel, the nations 5th largest wireless carrier for an estimated $27 billion dollars.
TPG and Goldman Sachs took Alltel private last November in a $27.5 billion deal it is not expected that Verizon will pay any more than this even though Alltel has increased its earnings before interest, taxes, depreciation and amortization (Ebitda) by 10 percent since the leveraged buyout was announced last may.
If Verizon pulls an Alltel acquisition off it, once again, will be the nations largest wireless provider. Verizon currently sits in the number two spot behind AT&T by the slimmest of margins and an Alltel deal will definitely put them over the top.
Similar Posts:- And Then There Were Three…
- Verizon Completes Alltel Purchase… Now Nations #1 Wireless Carrier
- BlackBerry Tour Now Available From Alltel
- Alltell To Get The BlackBerry Pearl 8130 In Time For The Holidays
- Alltel BlackBerry Curve 8330 Due Next Week
{ 1 trackback }
{ 7 comments… read them below or add one }
Wizard!
This would be a good acquisition for VZW. It would fill in the network in rural areas and add analog coverage. Also, it would give Alltel subscibers better data coverage. This is what Sprint should have done instead of buying Nextel
Full disclosure: I am an Alltel investor.
I think that I may have had a share or two before they went private.
…buying another carrier is more than likely the most cost efficient way of expanding their network now.
It’s over there is an official announcement on the VZW web site…
http://news.vzw.com/news/2008/06/pr2008-06-05.html
Less choice and high prices. Sounds like a great deal to me.
This is a smart move by Verizon. It seems they got a good price, and it gives them the bragging rights over ATT again in terms of subscribers.