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Re: Why bother? Qwest also doesn't have any money. They can barely maintain their rapidly declining network, let alone purchase an asset that doesn't help their landlne or internet business at all.
said by rahvin112:Since when does not having the money stop a buyout or merger? They can just borrow it and use the assets of DTV as the collateral for the loan. See "Leveraged Buyout".
Qwest also doesn't have any money. They can barely maintain their rapidly declining network, let alone purchase an asset that doesn't help their landlne or internet business at all.
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And wall street would slaughter both Qwest's and Liberty Media's stock price for the attempt because the resulting business wouldn't have sufficient assets or revenue to fund continued operations down the road.
That's assuming of course that the banks would lend them the money for a leveraged buy out, that Liberty would go for a price Qwest could afford and that Liberty isn't already so heavily leveraged that a loan against future assets is even viable. IIRC Liberty is already heavily leveraged with near back breaking debt (a result of acquiring directv from Murdoch). IMO the biggest breaker to the deal is that the banks wouldn't lend Qwest the money, they KNOW Qwest has a rapidly declining business that's likely to be in bankruptcy in a few years anyway. Given that corporate lending is still hard to get because of the credit crisis, Qwest's ability to borrow the money is almost non existant without an outside infusion of cash (not a loan).
I personally think there are better chances pigs will evolve to fly before Qwest buys directv.
reply to rahvin112
VZ should buy Qwest and leave the "turd bird" alone.