mergers

TW Spinning AOL Out

May 28, 2009

January of 2000 CNN announced: "In a stunning development, America Online Inc. announced plans to acquire Time Warner Inc. for roughly $182 billion in stock and debt Monday, creating a digital media powerhouse with the potential to reach every American in one form or another."

This morning, over 9 years later, TW is spinning AOL out, according to CNN, a TW company.

Steve Case on Twitter had a lot to say about AOL: "AOL Spin-Off Approved Last Night By Time Warner Board: http://bit.ly/ThYkx. My perspective on AOL & Time Warner: has been a long, tortuous journey - and after a difficult decade, its time to open new chapter.

Posted in Internet, mergers

A Rural Super Carrier?

May 18, 2009

With VZ shedding its last bit of rural landlines to Frontier, the blogosphere is alive with talk about Super RLEC's - Frontier, Fairpoint, CenturyTel, Windstream and maybe Qwest.

CenturyTel's coming merger with Embarq will give it the title as a top 5 ILEC is size. But these are declining assets as landlines are being shed for cellular and to some extent VoIP. How Super is that?

Telecompetitor writes, "For carriers that lack wireless assets, building the scale that can create operational efficiencies and provide the means to profitably build and leverage broadband applications is paramount for future survival."

Building Super isn't easy.

Posted in mergers, telco, wireline

Will Verizon Agents Get Screwed Again?

May 13, 2009

Remember the MCI Agents who didn't like the new deal under the Verizon Business umbrella, who were pushed aside and lost commissions? Did you know that when Verizon did their funky little deal with Fairpoint over the New England region, VZ agents were pink slipped. In fact, one agent is suing Fairpoint. It's the quote from Beth Fastiggi, a spokeswoman for FairPoint, that shocked me:

"We believe that our own local employees can better serve our local markets and, given the appropriate resources, will have the commitment and ability to increase our share of the local business market," Fastiggi said in a statement Friday.

Don't need agents. That attitude explains the lousy service, numerous complaints to the PUC, and the lose of over 100k lines - in a rural market!

Today, VZ announced it is spinning off the landline network in 13 more states - to a joint venture corporation with Frontier.

Posted in agents, channel, mergers, telco

VZ Gets Rid of 13 States

May 13, 2009

Although it was AT&T's CEO that said We are a Wireless company, it is the actions of Verizon that make you stand up and take note. Today, VZ reached a deal with Frontier - a $8.6B all-stock deal. As Frost & Sullivan analyst Vanessa Alvarez tweets, "$VZ and Frontier will create company called Spinco, $VZ will still own 68%." It looks like another Fairpoint deal. The only happy camper is VZ.

Posted in mergers, wireline

Windstream Buys ICP

May 11, 2009

Thanks to the Arkansas Democratic Gazette for the chart.

Despite a big drop in earnings and revenue for the first quarter 2009, Windstream still managed to buy some more lines and customers by snatching up D&E Comm.

D&E Communications is an ICP, an integrated communications provider, offering residential Voice, Video, Broadband and On-Site Computer Support services as well as business-class Networking, Business Continuity, IT, Security, Voice and Training solutions. D&E is an ILEC and a CLEC.

This stock-and-cash deal (worth about $330M) "nearly doubles the company's operating presence in Pennsylvania with the addition of approximately 165,000 access lines and about 44,000 high-speed Internet customers." That's about $2000 per subscriber.

"D&E Communications generated $148 million in revenue and $64 million in operating income before depreciation and amortization (OIBDA) in the twelve months ended March 31, 2009." So the buy is about 2x Annual Revenue for those hoping to play at home.

"The transaction also includes six wireless licenses for 700 MHz spectrum covering a population of approximately 1.3 million in central Pennsylvania," according to the press release.

While Windstream isn't having a strong quarter with dipping revenue, it is doing okay selling Internet and TV.

Posted in CLEC, Internet, mergers, spectrum, telco, video, wireline

Alltel Assets Going to AT&T

May 11, 2009

How does this work?

"AT&T Inc said Friday it will buy the bulk of Alltel Wireless assets being divested by Verizon Communications Inc for $2.35 billion, and will sell some Centennial Communications Corp assets to Verizon Wireless for $240 million." [telecomengine]

When they say divest assets, it's suppose to increase competition. Swapping assets between the two biggest players is not what was meant. "Verizon previously had said more than 30 companies had expressed interest in the Alltel assets." I guess only one was REALLY interested.

Posted in cellular, mergers, spectrum, telco

Qwest LD For Sale

May 5, 2009

Qwest has started the process to sell its LD network. Asking price is just $3B. Suitors include Level3, Verizon, Ma Bell and tw telecom. From Forbes.com.

Posted in mergers

Merger Rumors Abound

April 7, 2009

Well, it is conference month with the industry gathering at CTIA and VoiceCon (and other shows). And when we get together we tend to gossip. The latest rumors (some thanks to Telecom Ramblings) involve XO, TWTC, and Qwest.

Apparently, Qwest longhaul business - the original Qwest - is for sale, but who has that kind of money to buy it?

Posted in mergers, telecommunications

TW Splitting Up with Cable

February 12, 2009

Time Warner has received approval from the FCC to spin off TW Cable.

"The separation of Time Warner Cable Inc. gets Time Warner out of the media distribution business altogether, something investors had been clamoring for. The company announced its decision to split up last month and said Wednesday that the boards of the two companies had agreed to financial terms.

Time Warner Cable is the second-largest cable provider in the country after Comcast Corp. with about 13.3 million video subscribers. It has been a public company for more than a year, but Time Warner had held on to an 84 percent stake.

Posted in cableco, mergers

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