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.
posted Jun 4th 2008 4:01PM
Hooray for monopolies!
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!
though, when tmo buys sprint, I'll be happy.
to be really monopolizing, they could buy AT&T/Cingular and I could get an iPhone
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.
that would make those alltel commercials really interesting.. So now the Verizon guy owns the Alltel guy.
If it means that I wouldn't have to see another stupid commercial with Chad (aka Giant Douche) then yes... please buy Alltel.
I was thiinking the same thing. I want to see the wizard actually own Chad.
Wizard!
"You should see his twuk..."
haha sucks for you stupid wizard! just when you signed up with them too. what a shame.
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"
Say goodbye ? When did we say hello.
Looks like Chad might finally get what he's been dishing out.
who uses Alltel to be honest? how does that company still exist and how are they worth 27 billion?
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.
I actually use alltel and so does just about everyone I know, they are they biggest carrier in my neck of the woods.
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.
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.
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?
@Za
Take it easy. Hostile, much?
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....
And for us poor saps that work for Alltel, we gonna be searching for a new job at the worst time! Greedy bastards!
grats
It looks like Verizon is taking Chad up on his offer to come and get some love!
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?
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.
thats gonna be one big bitch of a company
more like a big ass of a company.
Veritel, anyone?
That actually sounds alright and after that we will finally get vodafone.
Vodafone? Not until 4G rolls around.
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.)
Yeah but the way they cripple the phones with their proprietary software s ridiculous.
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.
There are numerous ways to hack V's phones....just google it. :)
I was always told that you can't switch over CDMA phones to different providers, like you can with GSM phones.
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.
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.
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.
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!!
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'
"my company (corporate overlords) doesn't support the iphone."
Not yet...give it about a month.
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!
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.
Chad is gonna have some 'splainin to do. His only hope now is to say
AT&T put him up to it.
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.
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.
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.
I actually always saw T-Mo and Alltel combining; two smaller companies teaming up to take on ATT and Verizon.
hmm.. see that would be smart if t-mobile (GSM based in europe) and sprint (CDMA.. plus Nextel being Iden) were uhh... using the same uhhh technology....
moron.
Alltel uses CDMA and T-Mobile uses GSM/HSDPA. They could never (feasibly) merge.
Verizon will rape alltel with their data charges! $89.99 at alltel can get you mycircle, free nights (starting at 7pm) and free weekends, not to mention unlimited data, texting, and video messages. Expect to be spending lots more if verizon comes.
This is just the beginning to the Att Verizon merger in 2015
This will go down in history... (well future history) like the Apple / Microsoft merger in 20-when hell freezes over...
G@DD!@#%T! One less choice in wireless providers. Everyone always says if you don't like Verizon, leave. Now there will be even less choice in the wireless market. In a free market demand for services determines price. now that there is even less choice, prices will only continue to increase.
I know business exists to make money. However when Verizon cripples phones, charges 20 cents per text, sells unlimited data capped a 5gb, and otherwise blocks features on their phones it makes it real hard to be supportive.
I F'ing hate them.
Not too smart are you? To address your statement... How does verizon cripple your phone? What specific things do you want that a verizon phone can't do?
"20 cents per text" Are you an idiot? Why wouldn't you pay the extra few bucks and get a plan?
"unlimited data capped" You mean the same as all nationwide carriers?
Go back to Cricket.
Verizon cripples your phone by eliminating Bluetooth functionality and other manufacturer's abilities that they'd rather you pay for (for example, many phones let you record sounds and use them as ringtones, but Verizon feels you should pay them for that privilege rather than the phone manufacturer). Some people don't like text messages or don't want to pay $5 for 250 text messages they'll use ten of. It should be illegal to call something "unlimited" that isn't, I don't care who you are. And no, I kind of doubt he's an idiot.
Dude, You're getting bought out!
In my area there are only Verizon and Alltel so if this happens I have no choice as to what provider I can have. I have always been very very happy with Alltel even before it was Alltel back in the good ol cellular one days.
Damnit. I switched to Alltel to get AWAY from Verizon. What a bunch of con artists....
I live in Chicago and Alltel doesn't even exist here (some "major carrier" doesn't have serivce in one of the largest cities in america)
I always had them pegged to merge with US Cellular (who's really big here, I think even more than T-Mo and Sprint)
That said......I have Verizon
whatchya talking about! US cellular has been dead for ages in the chicago area. Sprint is the biggest here 'cause it's coverage is blanketed all across chicago. That's why sprint users in chicago are the only users with 100 percent good coverage (from what I hear)
Now, if only Verizon would abandon their idiot menu structure and use Alltel's CellTop on their phones...
Your earlier post is great. It shows either you don't have Verizon or you just like talking out of your ass. My verizon blackberry let's me record sounds and use them as ringtone. It even lets me use any mp3 as a ringtone, if that's important to you. You can actually do this with several verizon phones. Try google some time to find out how.
You mention $5 text plan or people that may only use 10. If $5 or $2 for 10 is a lot of money to you then maybe you should reevaluate your life and not have a cell phone, or home internet.
Lastly you mention the word "unlimited". I assume you are referring to verizons 5gig cap on data. Funny how verizon doesn't call it an unlimited plan. So i wonder why you call it unlimited.
i have been with alltel ever since i got a phone, its a great service but they don't have any good phones. i hope that they do buy alltel because then they might get better phones.
Just great, unless Verizon gets some awesome smartphones, im just going to cancel my contract and switch to the Simply Everything plan for Sprint.
IF this does happen... How much do you think of Alltel will divested and in what areas?
I don't like this news. Verizon is much more expensive than Alltel. I don't want my prices jacked up.
in 2010 none you will care about this merger..... Its a smart move for Alltel.. Some of you Alltel lovers are looking at the short term... the recent auction is a good indication of where the market is going. Alltel is a private company, that can do very little to expand, the companies that purchased Alltel took it private for a reason, to turn and and sell it. The two owners are not in the business of building up Alltel, they are an investment firm. The new Technology that is coming out in about 2010, 2011,LTE I believe its called, will cost allot of money to roll out. Alltel doesn't have the funds to keep up with sprint, vzw,or att, or t, GSM, and CDMA will give way for LTE 4G soon, I am sure there will be multiple phones that can switch back and forth, but like myself ,and some of the rest of the tech geeks, we want the latest best technology. cdma and gsm will go the way of analog, and alltel can't afford that. Sprint does not have the money to take over another carrier, and vzw and alltel makes sense, and with any take over, vzw or any company would take what works best at alltel and transfer that to vzw, and the rest would be scrapped. I have never had alltel service, but I heard they have great phones, and good deals, and with any company, i am sure customers would be grandfathered in. My uncle still has his same plan from 5 years ago, its a hell of a deal and he does not have to change his plan unless he changes his phone, and he is from the old school days, as long as it rings and answers he is happy.
In the world of capitalism , this is going to happen, if you owned a business on the street corner, and you had an opportunity to buy out your competitor, to increase your presence, wouldnt you do it?
After all the money they spent on the wireless spectrum... where the hell are they finding the cash to do this!?!?
I emailed this to you Engadget years ago when i had heard it from Alltel. However if its been years in the making i dont know how much i would care about it.