Potential Acquisitions (Question for the board)
if you are reporting that US Cellular is getting bought out by Verizon I would slow down with that statement especially since it could be inside information and that person/people could be in trouble. I urge the person who is continuing to say this to stop.
With regarding any buyout. The most important thing that a buyout has to happen is if there are any prospects to the buyout. If also there will be synergies. Obviously private equity or a strategic buyer could be looking at this company especially since other companies like Alltel have been bought out and the recent acquisitions by Verizon and Cingular. By $2500 per subscriber and the 6 million US Cellular has it values the company at $15B.
What do you think US Cellular has to offe...
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With regarding any buyout. The most important thing that a buyout has to happen is if there are any prospects to the buyout. If also there will be synergies. Obviously private equity or a strategic buyer could be looking at this company especially since other companies like Alltel have been bought out and the recent acquisitions by Verizon and Cingular. By $2500 per subscriber and the 6 million US Cellular has it values the company at $15B.
What do you think US Cellular has to offe...
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You are correct. I think with the response over the last year of TDS buying up shares of the open stock does not show signs of a buyout. Dont get me wrong if they got a 25-20billion offer they prob wouldn't say no.
TDS has realized the power of leveraging services across the communication industry. (not just wireless) this is why US Cellular is a very good strategic fit for their business portfolio.
Who knows you might one day see a triple play offer with TDS and US Cellular. (prob not but never know)
US Cellular is attractive to both outside investments and current players so I will look at both.
1. Outside -
From the point of view of a holding company, investment bank or other wealthy (Murdock lol) a wireless venture w...
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TDS has realized the power of leveraging services across the communication industry. (not just wireless) this is why US Cellular is a very good strategic fit for their business portfolio.
Who knows you might one day see a triple play offer with TDS and US Cellular. (prob not but never know)
US Cellular is attractive to both outside investments and current players so I will look at both.
1. Outside -
From the point of view of a holding company, investment bank or other wealthy (Murdock lol) a wireless venture w...
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My reasoning doesn’t have anything to do with what TDS has been doing by buying more shares as you have indicated and insider transactions have too, but the fact that US Cellular is expensive, if there are any prospects for the company who does buy them, and about the person who said that rumor.
Your mentioning of it, however, plays an important role as TDS will want a bigger premium based on US Cellular’s performance both operationally and financially as well as their potential prospects and past purchases of wireless carriers as precedent. Moreover, TDS would probably want the potential buyer to buy the whole company instead of pieces, which makes the purchase price higher.
Investment bank would always look at these types of compan...
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Your mentioning of it, however, plays an important role as TDS will want a bigger premium based on US Cellular’s performance both operationally and financially as well as their potential prospects and past purchases of wireless carriers as precedent. Moreover, TDS would probably want the potential buyer to buy the whole company instead of pieces, which makes the purchase price higher.
Investment bank would always look at these types of compan...
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Theres not many areas the USCC offers that Verizon doesn't. Besides, Verizon roams on there network sometimes, and the can charge customers for that. I doubt this will happen, though.
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what customers is verizon going to charge for roaming on USCC's towers, they are a roaming partner for verizon, which sucks if you go in nebraska much.
and there are key areas verizon would pick up by getting USCC. they would pick up the rest of Iowa, areas in wisconsin, and Nebraska. Although nebraska needs a lot of attention. The question would be is it worth it for verizon to buy USCC to gain the areas they dont have now. Remember, they will sell off the areas that they have overlay, so the true purchase price would not be what they pay up front, but what they end up paying after they sell off the overlay.
The truth is that USCC will be swallowed up at some point in the future. When is anybody's guess, and by who is a guess a...
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and there are key areas verizon would pick up by getting USCC. they would pick up the rest of Iowa, areas in wisconsin, and Nebraska. Although nebraska needs a lot of attention. The question would be is it worth it for verizon to buy USCC to gain the areas they dont have now. Remember, they will sell off the areas that they have overlay, so the true purchase price would not be what they pay up front, but what they end up paying after they sell off the overlay.
The truth is that USCC will be swallowed up at some point in the future. When is anybody's guess, and by who is a guess a...
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Just so you know... VZW would most likely NOT sell off the overlay. Reason being is that spectrum is a highly sought after commodity now and the reason that Verizon does not allow data roaming in many areas is because they do NOT have enough spectrum to spare. This is one of the few things that Sprint has going for them. They own the most Spectrum of ALL carriers.
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drksyde said:
Just so you know... VZW would most likely NOT sell off the overlay. Reason being is that spectrum is a highly sought after commodity now and the reason that Verizon does not allow data roaming in many areas is because they do NOT have enough spectrum to spare. This is one of the few things that Sprint has going for them. They own the most Spectrum of ALL carriers.
Where USCC cellular licenses overlap with VZW, they might have to divest that. Areas with USCC being PCS & VZW cellular or cellular/PCS, it depends on how much competition is in that area, before they're allowed to keep PCS spectrum. I know that if VZW could acquire USCC, they would get the other 20mhz B block that was divested wh...
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Not exactly. Sprint does have a lot of spectrum in many of the top 100 markets and others, which combines their AWS, PCS, SMR, and MMDS spectrum; however, Verizon actually in some of their top 100 markets have more spectrum than Sprint or Cingular (AT&T). The thing is, Verizon has many 800 MHz spectrum, which isn’t that good with EV-DO, but they are starting to acquire a lot of the 1.9 GHz spectrum, which is usually used for data. Sprint has a ton of spectrum on the 1.9 GHz band optimizing their data network, that is why Sprint is more successful than Verizon with data, and can offer a lot of roaming and MVNO platforms. Sprint is also using Nextel’s 800 MHz and will be using the MMDS spectrum for the new Wimax launch. Verizon does have so...
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nextel18 said:...
Not exactly. Sprint does have a lot of spectrum in many of the top 100 markets and others, which combines their AWS, PCS, SMR, and MMDS spectrum; however, Verizon actually in some of their top 100 markets have more spectrum than Sprint or Cingular (AT&T). The thing is, Verizon has many 800 MHz spectrum, which isn’t that good with EV-DO, but they are starting to acquire a lot of the 1.9 GHz spectrum, which is usually used for data. Sprint has a ton of spectrum on the 1.9 GHz band optimizing their data network, that is why Sprint is more successful than Verizon with data, and can offer a lot of roaming and MVNO platforms. Sprint is also using Nextel’s 800 MHz and will be using the MMDS spectrum for the new
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it isn’t really bad, but it is more efficient both cost to deploy it in the 1.9ghz than the 800mhz. obviously Verizon is now starting to do a lot of purchasing in the 1.9ghz are as well as purchasing some spectrum during the AWS auction. This obviously allows more capacity and data offerings to come forward. It could be some time before it gets into their network and Verizon turning it on. They have to obviously prepare for that spectrum use; such as clearing etc. In many of the top markets, Verizon has plenty of spectrum to offer both data and voice without any problems, but in some you are correct that they don’t have enough to do both and that is why they focus on voice and 1x instead of voice and DO. Obviously, companies will always want...
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Roaming, I think, is a key reason why companies shouldn’t purchase their roaming partners because it doesn’t make sense to do so, however, if there is a good reason such as the roaming costs are too much then obviously a buyout makes sense.
In this case, I don’t think it would happen, but of course, anything can.
In this case, I don’t think it would happen, but of course, anything can.
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