Verizon "in talks" to buy Alltel for $27 billion

Verizon has certainly courted Alltel before, but this time, the two could finally be rounding third base. According to a breaking report at CNBC, Verizon is "in deep in talks to acquire Alltel," which of course is America's fifth largest wireless carrier. It's no secret that Alltel has been riding fairly high of late, and unless your memory is totally shot, you'll likely recall that it was just recently "taken private by TPG and Goldman Sachs Capital Partners in a $27.5 billion deal." Not surprisingly, officials at both outfits refused to comment on the rumblings, but if this does indeed go down, analysts are expecting Verizon to pay around 8x Alltel's current EBITDA, whereas TPG / Goldman Sachs paid 9.2x. We'll keep you posted on any developments.

Update: The talks have been confirmed by Vodafone which owns a 45% stake in VZW.

[Jonathan-DBOSS @ Jun 4th 2008 4:04PM]

Hooray for monopolies!

[CUBSWILLWIN @ Jun 4th 2008 4:23PM]

Man, that pretty much could be a monopoly, yet it's totally sweet when big companies buy other big companies for large chunks of cash. HOORAY!

[CUBSWILLWIN @ Jun 4th 2008 4:26PM]

though, when tmo buys sprint, I'll be happy.

[d @ Jun 4th 2008 5:03PM]

to be really monopolizing, they could buy AT&T/Cingular and I could get an iPhone

[ethan @ Jun 4th 2008 9:05PM]

T-Mo and Sprint??? NEVER will happen. That would be a major SET BACK for T-Mobile's great business plan.

As for Alltel: They suck. Let's feed them to VZW.

[giantenemycrab @ Jun 4th 2008 4:08PM]

that would make those alltel commercials really interesting.. So now the Verizon guy owns the Alltel guy.

[Allan @ Jun 4th 2008 4:32PM]

If it means that I wouldn't have to see another stupid commercial with Chad (aka Giant Douche) then yes... please buy Alltel.

[retro77 @ Jun 4th 2008 4:58PM]

I was thiinking the same thing. I want to see the wizard actually own Chad.

[Andrew @ Jun 4th 2008 5:28PM]

Wizard!

[Idlemind @ Jun 4th 2008 5:39PM]

"You should see his twuk..."

[kojo87 @ Jun 4th 2008 4:09PM]

haha sucks for you stupid wizard! just when you signed up with them too. what a shame.

[Nicky-Larson @ Jun 4th 2008 4:11PM]

And Verizon's dream to become the SOLE BULLY of Mobile Communication Crippling gets even closer to reality. People, Say good bye to Cellular Freedom. They could not even play fair with the FCC Auctioned Spectrum, and now they want to become big. More nightmares ahead, anyone, anyone....


"Goes home to cry"

[dcny @ Jun 4th 2008 5:54PM]

Say goodbye ? When did we say hello.

[Cagrino @ Jun 4th 2008 4:12PM]

Looks like Chad might finally get what he's been dishing out.

[marcin @ Jun 4th 2008 4:44PM]

who uses Alltel to be honest? how does that company still exist and how are they worth 27 billion?

[CoolBradG @ Jun 4th 2008 5:10PM]

Are you joking? Where I live Alltel is the major carrier, pretty much everyone has it. Did I mention their amazing coverage? My family has never been charged for roaming and we've been through many states.

[Teetdogs @ Jun 4th 2008 6:54PM]

I actually use alltel and so does just about everyone I know, they are they biggest carrier in my neck of the woods.

[CUBSWILLWIN @ Jun 4th 2008 8:20PM]

well here in chicago, alltel is dead small, and spriint is really big, blanketing the whole area really. VZW also takes a lead here, but AT&T has been pretty big in suscribers in Chicago since the iphone, but thats also everywhere.

[TheCow5 @ Jun 4th 2008 4:22PM]

Why can’t these big companies compete with the little companies instead of buying them out? Is it that they no longer know how to compete and simply want a quick easy way to win?

I am sure this is good for the smaller company’s shareholder but it’s in no way good for consumers.

[Za @ Jun 4th 2008 4:29PM]

It's cheaper. End of story. Why compete with if you can buy the competition? The corporations don't exist to dole out good will and happiness. They exist to make a profit and they will do what needs to be done to get there. Econ 101, much?

[Cagrino @ Jun 4th 2008 4:44PM]

@Za

Take it easy. Hostile, much?

[sjdurfey @ Jun 4th 2008 7:14PM]

hey, as long as it increases verizon's cell phone coverage and improves their service and decreases their prices, its all good. but, one (or millions) can only hope....

[Chaddywack @ Jun 4th 2008 4:19PM]

And for us poor saps that work for Alltel, we gonna be searching for a new job at the worst time! Greedy bastards!

[retro77 @ Jun 4th 2008 4:59PM]

grats

[Aron T @ Jun 4th 2008 4:21PM]

It looks like Verizon is taking Chad up on his offer to come and get some love!

[hotwings1 @ Jun 4th 2008 7:44PM]

So wait a minute, the mobile carrier that was credited for having the second worst customer service, which would be Verizon, is looking to buy a company that got first place for best customer service, Alltel? WTF?

[ethan @ Jun 4th 2008 9:13PM]

YOU ARE A FOOL!!!!

T-Mo is ranked #1 in wireless customer care. They were even in the top 50 in Forbes magazine as being #28 (can't remember exactly) out of all the companies in America. Don't even pretend to think Alltel has good customer care. I used to sell for them, and the phone center is WORTHLESS.

[Sime @ Jun 4th 2008 4:22PM]

thats gonna be one big bitch of a company

[CUBSWILLWIN @ Jun 4th 2008 4:25PM]

more like a big ass of a company.

[MastrCake @ Jun 4th 2008 4:23PM]

Veritel, anyone?

[dcny @ Jun 4th 2008 5:57PM]

That actually sounds alright and after that we will finally get vodafone.

[Jamar @ Jun 4th 2008 6:40PM]

Vodafone? Not until 4G rolls around.

[kklick @ Jun 4th 2008 4:34PM]

This could have some serious implications in the long run, but honestly, as an Alltel customer, I would welcome this. Verizon always has the coolest phones. (In the US at least.)

[Jeff @ Jun 4th 2008 4:38PM]

Yeah but the way they cripple the phones with their proprietary software s ridiculous.

[DHV217 @ Jun 4th 2008 4:57PM]

My solution for that is to just take the E816 from Altel and put it on my Verizon plan, just don't mention it to Verizon.

[Brian @ Jun 4th 2008 4:59PM]

There are numerous ways to hack V's phones....just google it. :)

[kklick @ Jun 4th 2008 4:59PM]

I was always told that you can't switch over CDMA phones to different providers, like you can with GSM phones.

[tande @ Jun 4th 2008 5:28PM]

See I was going the other way and say I'd look forward to getting some of those "exclusive" altel hand sets ported over to Verizon.

[DHV217 @ Jun 4th 2008 5:31PM]

You mean like having the exclusive Altel slightly better looking, E816 on V ? Yeah it works, just it shows up as a E815 when I look at the my account page on V's website.

[sjdurfey @ Jun 4th 2008 7:24PM]

wow, "Verizon", "has", "cool phones" i never thought i would see that in the same sentence in that order. ive always hated their cell phone selection, but it is getting better.

[Sigh = @ Jun 4th 2008 4:45PM]

I like the fact that I can get almost 5 bars just about anywhere I can throw, roll, or stash my human shell ... but having a phone that does absolutely jack shit unless I bend over and take extra charges up the ass with no lube sucks.

Smart Phone ... Free!!
Family Calling Plan w/900 minutes plus FREE nights & weekends ... $45
Unlimited Texting, Internet, and basic use of your free "smart" phone ... $99 sans lube.

Yeah, I know ... but there's that iphone thing ... my company (corporate overlords) doesn't support the iphone.

Woo hoo!!

[matt @ Jun 4th 2008 5:09PM]

I don't know, I think $99/month for unlimited texts, unlimited data, unlimited night, weekend, and mobile minutes is no that bad of a deal. Especially considering their network has by far the best and most consistent 3G coverage. AT&T isn't going to give you any better of a deal with the iPhone, but good luck getting the 3G coverage your accustom to on VZW. You just have to accept being high tech is expensive.

Plus, with a smart phone you can completely eliminate all of VZW's locked down crap they put on their phones, thus avoiding their 'tethering fee' or the 'VZ Navigator fee'

[Chandler @ Jun 4th 2008 6:15PM]

"my company (corporate overlords) doesn't support the iphone."

Not yet...give it about a month.

[Nathan Fitch @ Jun 4th 2008 8:08PM]

VZW had their chance with the iPhone, but they passed it up... thank god, could imagine how ugly the thing would look with their crappy red and black software, ick!

[Virtuous @ Jun 4th 2008 4:45PM]

Like most companies Verizon needs to grow. In order to grow Verizon can either steal customers from other carriers or acquire/merge with other carriers.

[Sean M. @ Jun 4th 2008 4:45PM]

Chad is gonna have some 'splainin to do. His only hope now is to say
AT&T put him up to it.

[matt @ Jun 4th 2008 4:56PM]

I find it interesting that Verizon, and not Verizon Wireless, is buying Alltel. So does that mean that if the Alltel assets are in fact added to Verizon Wireless, does that mean Verizon will now own an even larger share of Verizon Wireless? Or is Vodafone throwing down for this deal too? I'm no business guru but would be curious to know if/how this changes the VZW partnership.

Oh, and seeing as the likes of Sprint/Nextel, AT&T, and various local wireless providers have a good chunk of the market share, I don't think this will make Verizon Wireless any more of a monopoly.

[Jesse @ Jun 4th 2008 5:01PM]

According to a Marketwatch article, an eventual sale to either Sprint or Verizon was deemed a possibility.

I'm sure with the current credit situation, private equity may be looking to unload some of it's holdings. If you remember, a lot of private equity deals are heavily financed through debt.

[Kyle @ Jun 5th 2008 9:30AM]

The only two major networks in my area are Alltel and Verizon...perhaps if one buys out the other I can get finally get decent reception everywhere.

[Sam @ Jun 4th 2008 5:19PM]

I actually always saw T-Mo and Alltel combining; two smaller companies teaming up to take on ATT and Verizon.