dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
243
share rss forum feed

OwlSaver
OwlSaver
Premium
join:2005-01-30
Berwyn, PA

Possible Deals

Here is my guess of what could happen:

- Verizon buys all shares (if they can spend $135 Billion on half of VZW, they could wire the country for FiOS - but that is a different story)

-Verizon passes and a venture firm buys the shares (unlikely since Verizon does not like sharing with Vodafone)

-Verizon dilutes existing shareholders and issues enough new share to buy the company (most likely, nothing like playing with other peoples money).

I would expect some combination of the above. Does anyone know how much cash Verizon currently has?

iansltx

join:2007-02-19
Austin, TX
kudos:2
Reviews:
·Time Warner Cable
·Verizon Online DSL
$3.5B: »ycharts.com/companies/VZ/cash_on_hand

If Verizon could sell off all of its wireline holdings to a mix of Windstream and CenturyLink without gaining regulatory ire, in exchange for enough money to do a leveraged buyout of the rest of VZW, they would. Heck, they might even be willing to sell their long haul network to get enough cash, though I'm not sure who would buy at this pont that wouldn't get boxed out by regulatory concerns (CenLink and AT&T are probably out, as is Level3, and XO probably doesn't have the money, nor does Cogent).


IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast
said by iansltx:

$3.5B: »ycharts.com/companies/VZ/cash_on_hand

If Verizon could sell off all of its wireline holdings to a mix of Windstream and CenturyLink without gaining regulatory ire, in exchange for enough money to do a leveraged buyout of the rest of VZW, they would. Heck, they might even be willing to sell their long haul network to get enough cash, though I'm not sure who would buy at this pont that wouldn't get boxed out by regulatory concerns (CenLink and AT&T are probably out, as is Level3, and XO probably doesn't have the money, nor does Cogent).

I'd rather see CenturyLink buy out VZ's wireline assets here in Massachusetts. They are the phone provider in my hometown of Cedar Rapids, IA. I'm getting VZ wireline installed on the 2nd of April. I've had enough problems with Comcast so I'm ditching them for everything except for Internet and basic cable. I have had good experiences with DirecTV in the past and VZ offered a home phone and telephone bundle that was too good to refuse. I'm keeping Comcast for Internet as the only other option is DSL and I'm buying basic cable (about $5 per month) to get the cheaper Internet rates.
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner and I currently have DirecTV. They are much better than broadcast TV.

I have not and will not cut the cord.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to OwlSaver
said by OwlSaver:

-Verizon dilutes existing shareholders and issues enough new share to buy the company (most likely, nothing like playing with other peoples money).

Debt is so cheap these days that this is an unlikely scenario. Maybe an equity offering in addition to taking on debt, but it'd be silly to sell off $135B in new equity when adding cheap debt is likely a much better use of capital. Having said that, I'm curious if VZ can afford to bite off ~$135B to buyout VOD.
said by OwlSaver:

I would expect some combination of the above. Does anyone know how much cash Verizon currently has?

A little over $3B in cash and $61B in debt as of the end of FY12.

OwlSaver
OwlSaver
Premium
join:2005-01-30
Berwyn, PA
said by openbox9:

A little over $3B in cash and $61B in debt as of the end of FY12.

With numbers like that, I can see how they could afford this deal. Say the spent $1B outright and leveraged the rest, they would end up with $2B in cash and $195B in debt. Finding $135B in funding may not be that easy.


aaronwt
Premium
join:2004-11-07
Woodbridge, VA
Doesn't Verizon Wireless easily earn over 1 Billion in profit every quarter?

openbox9
Premium
join:2004-01-26
Germany
kudos:2
$31.5B in cashflow from$115.8B in revenue last FY.

openbox9
Premium
join:2004-01-26
Germany
kudos:2
reply to OwlSaver
Debt is cheap and VZ's credit rating is A3, investment grade. Not the best, but not horrible. VZ likely wouldn't take on $135B solely in new debt.

I honestly don't see this buyout taking place. VZ likely wouldn't find a partner to share the cost burden that will be as tolerant as VOD and VZ probably won't be able to swallow the whole slice by itself. I'd like for VZ to wholly own the wireless business, but I don't want to see the company shoot itself in the foot to do so.