Verizon to buy Alltel for $28.1 Billion

[T Sizzles]

I see a T-Mobile/Alltel or USCC/Altell combination more likley.

[KyleAndMelissa22]

Originally Posted by T Sizzles

I see a T-Mobile/Alltel or USCC/Altell combination more likley.

I agree with a USCC/Alltel merger idea.

But T-Mobile & Alltel....theres just no point...
both use different technologies (GSM vs CDMA) as well as different bands (850 vs 1900).

T-Mobile and Sprint don't want or need 850 spectrum, at least that's what I've been hearing.

[JFB]

This new article in the NY TIMES says the previous buyers want out and will be happy to do it without a loss:
Alltel Sale to Verizon Looks Likely - NYTimes.com

[KyleAndMelissa22]

It's up to TPG & GS if they want to put Alltel up for sale.
They know possibly what Verizon will do, and the harm it could cause to the wireless industry.
So IMO, they should hold onto Alltel and protect it like a ton of gold.

[RadioFoneGuy]

I wish Alltel would snap up Cricket or Metro so they can get in to the Cities.

[cellular_freak]

Originally Posted by UFO

For alltel customers, just look at what happened when alltel sold the Connecticut network to Verizon, those customers lost My Circle.

I didn't know that Alltel sold that market to Verizon. Are you talking about the one that had to be divested when the merger between ATTWS and Cingular occurred? And if so, when did this happen?

[T Sizzles]

Originally Posted by KyleAndMelissa22

I agree with a USCC/Alltel merger idea.

But T-Mobile & Alltel....theres just no point...
both use different technologies (GSM vs CDMA) as well as different bands (850 vs 1900).

T-Mobile and Sprint don't want or need 850 spectrum, at least that's what I've been hearing.

T-Mobile doesn't use 850 spectrum at all. It'd be interesting to see T-Mobile and Alltel merge, as both are on the LTE bandwagon. That would make 3 massive LTE networks.

[KyleAndMelissa22]

Originally Posted by KyleAndMelissa22

I seriously don't think TPG & GS would give up their investment....



I look forward to staying with Alltel & My Circle, for many years to come....

Look at SunCom, they got to keep UnPlan, since T-Mobile bought them...

Does anyone know if Verizon would honor My Circle, if they did buy Alltel.
I'd really freak out at Verizon if they try to take My Circle away.
I believe that as long as my service & account are active, My Circle is here to stay.

There'd be way too many angry customers.

[larry]

Originally Posted by AnthroMatt

If Alltel and VZW merge, this might force Sprint and USCC to get together in some fashion.

Oh I doubt that. Verizon will most certainly go after USCC as their next target before Sprint would have any chance. The rich keep getting richer.

Do we all really want to see reduced competition and future higher prices? Be careful what you wish for.

[tmobileman]

My personal opinion is that if the deal does go through then the speculation about the tmobile buying sprint will also have to go ahead. I mean I think it would almost HAVE to at that point, what a crazy business we are in.

[UFO]

Originally Posted by cellular_freak

I didn't know that Alltel sold that market to Verizon. Are you talking about the one that had to be divested when the merger between ATTWS and Cingular occurred? And if so, when did this happen?

That's the one in Litchfield Co., CT. It's been talked about in the alltel forums since back around November. But just on May 31 or June 1 were all new activations directed to Verizon. Here's one thread I've kept up with on it. Apparently all alltel's customers were stripped of My Circle and given some bonus minutes to replace it.

If that were to happen, I'd have to go to Sprint or T-Mobile to keep a reasonable bill, not out of protest, just to keep from upping my bill by a signficant amount... I just ordered a PPC off of ebay too... dratz.

[AndThenScottSays...]

My contract ended in April and I knew there was just some reason why I wasn't renewing or buying a new phone. If this deal goes through, there should be a free large size tub of Vaseline to every Alltel customer to assist in the transition when Verizon plans take effect.

The T-Mobile/SunCom deal should be complete and stores rebranded right about the time the Alltel/Verizon crap hits the fan. Some things just work out too great! Hi T-Mobile. I'm Scott, I've been a happy prepay customer for a year now. Would you help me go ahead and convert that to a postpaid Blackberry?

[RJB]

After I read all these it kept saying alltel investors didnt see a huge return on their profits. That is making me think they do want out.

[bobolito]

I hope this doesn't go through. I much rather see Alltel become a national carrier on its own by buying spectrum and buying smaller carriers like USCC, Cricket and Metro PCS. But I've been wishing this for the longest and Alltel shows no signs of wanting to become national so I lost my hope in them. Although I would hate them being bought by Verizon, I think this is a very likely scenario being that Verizon is desperate to regain the #1 spot, plus it makes sense for them to gain all those rural areas where Verizon is weak.

[spleck]

It was my understanding that:
The investors had to borrow money to buy Alltel.
Lending forecasts are not good.
They have increased their equity stake in Alltel by paying off debt.
Analysts (and Verizon) believe they overpaid last year for Alltel.
Selling Alltel now would result in a small profit, while holding on to it would be risky.

Verizon didn't buy Alltel last year because they thought it was overvalued. With Alltel's higher EBITDA, Verizon sees them as worth the purchase price.

Everyone looks at this merger and judges what's good for the industry, but most companies/shareholders look at what's best for their company. Any of the big carriers would love to drive their competitors into the ground--if they get a chance to make a buy that helps them towards that goal, they'll take it.

Edit: Here's the important financial info from NYT:

The deal appears to be driven in part by Goldman Sachs and several of the large banks that financed the original deal seeking a way out of it. Citigroup, Barclays, Royal Bank of Scotland and others were never able to sell all of the debt, which was sitting on their own books at a loss.

Verizon is expected to pay about the same price that TPG and Goldman Sachs did last year. In an unusual twist, while the equity holders — TPG and Goldman — are expected to receive a small premium for their shares, some debt holders will sell at a discount, albeit at a higher price than the debt would fetch on the market.

[Dogma]

Originally Posted by KyleAndMelissa22

Alltel & Verizon are all over the Carolinas,
(Alltel is not in WNC) (and VZW is not in parts of the Pee Dee in SC, NW of Florence).

And Alltel & Verizon overlap in about 70 - 90 % of SC & NC.

IMO, Verizon lost out on Alltel when TPG & GS purchased them.
Plus I've heard that TPG & GS would continue to expand Alltel.
Alltel is now privately owned, so if Verizon does want Alltel, they'd have to go through TPG & GS.
(Which I don't think they'll give it up, as they already payed alot of money for Alltel.)
(TPG & GS are investment banks, so they wouldn't let go their nearly $30 billion investment.)

Surely if VZW did buy Alltel, we'd get to keep our phones. I never want to give up my LG AX4270.
Also, MyCircle should be grandfathered for current Alltel customers.
(if not then its a violation of contract on the carrier's side).

I disagree. TPG & GS are going to take a "short sale" and not make a return on investment. With Verizon and AT&T buying billions in the latest 700 MHz auction, Alltel's value went down IMO. Eventually those two companies could build their own networks out with the spectrum they bought, and not need Alltel for roaming.

My opinion always was that if Alltel did not buy spectrum in the 700 auction, they were in trouble. The private equity firms see the writing on the wall, and are cutting their losses. Its obvious they don't plan on expansion in buying up smaller carriers.

[fb]

Well, looks like this went through.

WSJ.com

Verizon Wireless to buy Alltel in $28.1 billion deal - MarketWatch

I wonder what is to come?

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[BillRadio]

This certainly will change the coverage landscape of the west. In some areas VZW will need to spin off the Alltel areas to someone else. Probably not AT&T. Let the fun begin!

CNBC Story

Blog with more story Links

[fb]

So Verizon did buy out Alltel from the private equity group. Seems like the price is decent.

Verizon Wireless to buy Alltel in $28.1 billion deal - MarketWatch

Free Preview - WSJ.com

Interesting, though I can only imagine it will drive up prices...

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