Alltel Going Private, Bought Out For $27.5 Billion
Big news for 12 million Alltel Wireless subscribers, Alltel has been bought out for $27.5 billion and will be taken private by its new owners. From SmartMoney:
The deal must be approved by Alltel's shareholders and by regulators. It is expected to close by March 2008.There had been much speculation that Alltel would be bought out by Verizon, since that company currently leases space on Alltel's extensive rural network and both networks use the same CDMA technology. —MEGHANN MARCOScott Ford, Alltel's chief executive, was quoted in media reports as saying the buyout price is "a 10% premium over a price that clearly anticipated this outcome."
Alltel has 12 million subscribers, the fifth-largest among major cell-phone companies, mostly in the Midwest, West and South. It has 15,000 employees.
Ford said no changes are planned in staffing, according to media reports. Ford will still be chief executive.
Alltel Going Private In $27.5 Billion Buyout [SmartMoney]
Post a comment
Comments:
This is good news for Alltel subscribers, because private ownership will make it much harder for them to get bought out by Verizon.
@B: will it really, or will it make it easier? they are being bought out by investment firms which typically make their money from mergers & acquisitions. they might just be taking it private to avoid a no vote from shareholders on a verizon merger. or they might carve the network up among sprint & verizon which both use cdma technology.
Kimsama, you took the words right out of my mouth. Are they trying to tell us something about Sprint?
Alltel was bought out by Goldman Sachs. They most likely will hold on to it, then sell it in a few years. They recently bought out JBL, the audio company, and used to own Burger King and AMF (the bowling places)
I am an Alltel subscriber and have been for years. i have been very pleased with their service, and I am very anxious to know how this might directly affect Alltel customers.
interesting, i've also been an Alltel subscriber for years, and have always loved my experience with it. hopefully it'll continue to be this way; the last thing i'd want to to have to go to Verizon!
Good news that Alltel wasn't assimilated by Verizon. Maybe there is still hope out there for reasonably priced wireless service. But does anyone know if Alltel is planning on coming to New York City? I would leave Cingular in a heartbeat for Alltel.
Why is Sprint such a fatty?