What would a merger of this size do to the wireless industry?
If this deal ends up going through this new wireless giant would boast about 80 million wireless subscribers. The nearest competition would be AT&T with about 72 million. Now, deals like this don’t happen overnight and have to go through the hoops of an FCC approval. This can take months to happen.
This isn’t the first time Verizon Wireless has been interested in purchasing Alltel Wireless. About a year ago Alltel was put of for sale and Verizon was the front runner to buyout the company. But, Verizon determined that the purchase price was inflated and ended up backing out. Alltel was then purchased by private investors including TPG Capital and Goldman Sachs for a sum of 27.5 billion dollars.
A deal of this size would definitely turn the wireless industry on its head. A bidding war could also happen as other companies like Sprint, Deutsche Telekom, and Vodafone. The whole irony in this deal is Alltel Wireless has been buying up regional carriers for years. Most recently they purchased Midwest Wirelss adding 400,000 subscribers. Now, they potentially may be bought out.
Related Posts
Comments
It just boggles my mind that companies deal in such big numbers. I mean I used to work for Verizon Wireless, of course back then it was GTE but…, and I know just how big a deal it would be for Verizon Wireless to buy Alltel Wireless but crap…that’s a lot of money. Maybe Verizon Wireless should save that money and give us, their faithful customers, a credit or something…yeah that’s it… I’ll just be holding my breath for that…
This is anotrher example of wireless companies saying that they will be leaner wireless companies by joining forces and passing the wireless savings onto the customer. However, we all know that the savings are just to keep investors happy. Wireless costs are just too high the world over.
I think this stinks. I was thinking about switching to Alltel because Verizon is too expensive. Guess I’ll have to take a closer look at AT&T.
i was wandering what wii happen to the circle of friends that alltel has going with their customers. it is not like verizon to give anything like that to their customers. and why cant a giant like verizon give rollover minutes.
