Tuesday, June 3, 2008

Verizon Wireless Considers Bid for Alltel

Verizon Wireless is considering making an offer to acquire Alltel in a deal potentially worth $27 billion or more, according to media sources.

Together, the companies would have over 80 million wireless subscribers.

Headquartered in Little Rock, Arkansas, Alltel has nearly 13 million customers and annual revenues of nearly $9 billion. Alltel completed its merger with an affiliate of TPG Capital and GS Capital Partners in November 2007 and ceased trading on the New York Stock Exchange.

During Q1, Alltel added just over 1 million gross customers through internal growth, a 26 percent increase from a year ago. Post-pay net additions were 163,000, up 50 percent year-over-year, and pre-pay net adds were 183,000.http://www.alltel.com

  • Alltel operates a CDMA network and a GSM network (through its 2005 acquisition of Western Wireless). It maintains roaming partnerships with the four national wireless carriers, including Cingular, T-Mobile, Sprint and Verizon.

  • In July 2006, Alltel completed the spin off its wireline business, which was merged with VALOR Communications Group to create Windstream, a major wireline operator focused on the rural U.S. market. Windstream serves approximately 3.4 million access lines and offers voice, broadband and digital TV services in 16 states.

  • In 2005, ALLTEL purchased Western Wireless Corporation in a stock-and-cash transaction valued at approximately $6 billion. ALLTEL gained about 1.4 million domestic wireless customers (GSM) in 19 western and midwestern states that are contiguous to existing properties.