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 Send to email | Verizon (VZ) Bails Out TPG, Goldman With $28 Billion Alltel Buy in SVZT |  By Silicon
el 05-Jun-2008 |
alltel-map.jpg: Paste this image in your site, Myspace, Facebook, Ebay copy this code...
 That was quick: Verizon Wireless' deal for No. 5 wireless carrier Alltel, first reported yesterday, was announced as a done deal this morning:
Under the terms of the agreement, Verizon Wireless will acquire the equity of Alltel for approximately $5.9 billion. Based on Alltel's projected net debt at closing of $22.2 billion, the aggregate value of the transaction is $28.1 billion.
Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion driven by reduced capital and operating expense savings. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing.
Why is Verizon (VZ) buying Alltel? In part to save some money it pays when its subscribers roam onto Alltel's large network. Also, it's a pretty good deal: TPG and Goldman took Alltel private for $27.5 billion last year, and it's still growing nicely.
But mostly for its 13 million subscribers and wireless spectrum holdings: With more than 80 million subscribers, the new Verizon Wireless becomes the biggest U.S. carrier, leapfrogging archrival AT&T (T).
Which begs the question: Is No. 3 carrier Sprint Nextel (S) cheap? Sure, it has plenty of problems, like a shrinking customer base and no clear future for its Nextel walkie-talkie system. But its $46 billion enterprise value is just twice what Verizon is paying for Alltel, and it has 54 million subscribers -- more than four times Alltel's base.
See Also:
Verizon Wireless CEO: 'Open' Access Won't Cost More
Alltel Snubs Clearwire: Can Sprint Make WiMax Work By Itself?
Is Sprint-Clearwire Doomed From The Start?
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| Verizon wants to buy Alltel, create incestuous major carrier |  What would you do with $27 billion? If your name is Verizon Wireless, it seems the answer is acquire rival Alltel. According to CNBC Verizon is “deep in talks” to acquire Alltel. The price currently being batted around is $27 billion, which is about equal to the GDP of Latvia. Alltel was recently purchased for [...] [..] Read complete article | | Published 04-Jun-2008 by Joshua Karp in AlltelNetworksVerizoncnbcverizon wireless
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| FCC approves Verizon-Alltel merger | | In a 5-0 vote, the FCC approved the $28 billion purchase of Alltel by Verizon Wireless. The approval requires Verizon Wireless to end operations in five other small markets neighboring those already required by the Justice Department. It also requires Verizon to honor Alltel’s existing roaming agreements with small wireless carriers for four years. With [...] [..] Read complete article | | Published 04-Nov-2008 by Kelly Hodgkins in AlltelNewsVerizonacquisitionapprovalDOJFCCverizon wireless
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| Verizon Wireless?s acquisition of Alltel is approved by the DOJ |  Thanks to a deal that has been quite a while in the making, AT&T is now on the verge is getting booted from its position as the nations largest wireless carrier. The Department of Justice approved on Thursday the $28 billion purchase of Alltel by Verizon Wireless. It comes at a price though, as Verizon will [...] [..] Read complete article | | Published 31-Oct-2008 by Kelly Hodgkins in AlltelNewsVerizonacquisitionDOJverizon wireless
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| Alltel offers up a free month of Navigation and XM Radio Mobile |  Alltel is gearing up for the holidays with yet another special offer that’s definitely worth checking out if you fall within the Alltel coverage area. The US carrier currently in the process of being swallowed by Verizon has just announced a nice little holiday promotion for everyone who purchases a new handset. From now through [...] [..] Read complete article | | Published 17-Nov-2008 by Zach Epstein in AlltelServicesSoftwarefreemobileNavigationpromotionsRadioxm
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| Alltel announces Wi-Fi partnership with Boingo |  If you’re an Verizon Alltel customer with a longing for free Wi-Fi, your life just got a bit easier. The carrier has announced a partnership with Wireless Internet provider Alltel to bring Boingo Hotspot access to wireless customers. For $69.98/month Alltel customers can experience all-they-can-eat data on their wireless handsets in addition to unlimited Boingo Hotspot [...] [..] Read complete article | | Published 26-Jun-2008 by Joshua Karp in AlltelVerizonWi-FiboingoEV-DOWiFi
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| Nerdblog | Blogger | Provides news about hardware, software, notebooks, laptops, PCs, Mac, PDAs
Nerdblog.Net |
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Verizon (VZ), the No. 2 U.S. telco, is close to a $27 billion deal for Alltel, CNBC's David Faber reports. If true, this makes plenty of sense:
A deal for Alltel, the No. 5 U. [..] 
After its $28 billion deal to buy Alltel, Verizon (VZ) is done shopping for a while, at least in terms of "horizontal" deals to add more breadth to the company's coverage areas, COO De [..] 
Goldman Sachs thinks Merrill Lynch (MER), reeling from its $32 billion mortgage gambling tab, needs to raise another $5-$10 billion to bolster its balance sheet. Ho [..] 
