| RE: Verizon Wireless completes Alltel purchase, will begin »news.yahoo.com/s/ap/20090109/ap_···n_alltelThe buyout is expected to result in the loss of many of the best-paying positions among the 3,000 employees at Alltel's Little Rock headquarters.
Verizon picks up Alltel's 12.9 million customers, though 2.1 million of them are in territory that will be sold. Verizon will have 83.7 million total customers after the divestiture.
Little Rock, Arkansas will take a sizable unemployment hit over the next year.
This also makes Verizon Wireless the biggest wireless provider in the US.
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 MadnessLike a flea circus at a dog show
join:2000-01-05
Quincy, MA
kudos:1 | I'm curious about this: Verizon payed $5.9B for a company w/ $22.2B in debt. Are they going to be responsible for that now that they own Alltel? It would seem so to me (unless they're going to find a way to write it off!). |
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| said by Madness:I'm curious about this: Verizon payed $5.9B for a company w/ $22.2B in debt. Are they going to be responsible for that now that they own Alltel? It would seem so to me (unless they're going to find a way to write it off!). They will be responsible for the debt.
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 BF69Premium
join:2004-07-28
Camden, TN | reply to Madness
said by Madness:I'm curious about this: Verizon payed $5.9B for a company w/ $22.2B in debt. Are they going to be responsible for that now that they own Alltel? It would seem so to me (unless they're going to find a way to write it off!). Well verizon now has what 16 million new customers from Alltel. If they say only make $10 profit per month per customer, that's $2 billion a year in profit. So it won't take long to pay off that debt. |
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KearnstdElf WizardPremium
join:2002-01-22
Mullica Hill, NJ | reply to fAcEtIOUs
and isnt all that debt good for tax writeoffs? |
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EPS
join:2008-02-13
Hingham, MA | reply to Madness
This is on top of Verizon Wireless' rather substantial existing debt as well- Verizon (the parent company) actually got hit with a credit rating cut due to this deal.
To make matters more difficult, while in the past Verizon Wireless has focused very heavily on paying off its debt, they've done this instead of paying dividends, and Vodafone has been more and more vocal about their dissatisfaction with the loss of dividend revenue. One wonders where this will end up... I would think the credit markets would make it quite difficult for VZ to think of buying out VOD's stake at the present time. |
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