divestiture
Latest
Comcast proposes giving up 3.9 million customers to clinch its TWC merger
Comcast said it would be willing to shed customers to secure its buyout of Time Warner Cable, and today it's backing up those words with (tentative) deeds. The media behemoth has reached a deal that will see it offload 3.9 million subscribers -- mostly in the Midwest, check after the break to see where -- if the merger goes through. About 1.4 million of those would go to Charter; the remaining 2.5 million will go to a spin-off company where Charter will have a one-third stake (Comcast shareholders own the rest). The move should keep Comcast under 30 percent of the TV market and make Charter the second-largest cable provider in the US. In theory, that's good news for those worried that Comcast would carry too much industry clout if it gets TWC under its belt.
Nokia finishes offloading Vertu, rumors claim Vertu plans a matching switch to Android
Nokia has ended one of the more significant chapters in its tumultuous history: the Finnish phone giant has finished divesting Vertu to private equity firm EQT VI, shedding direct control of the definitive luxury phone brand. The formal switch lets Nokia keep a 10 percent stake and move 1,000 staffers to the newly independent company. Where Vertu goes next may be more intriguing, however. There's no official word on any change of direction, but that hasn't stopped tipsters from claiming to TechCrunch that there's a big shakeup ahead. Supposedly, former Nokia VP Anssi Vanjoki will finally get the phone maker CEO position he's been looking for through a Vertu spot, and he won't simply follow in his former employer's footsteps -- upcoming Vertu phones may use Android, not Windows Phone. While it's a very unconfirmed rumor, a switch-up wouldn't be completely surprising when Vertu is still an all-Symbian house that needs more than just a few extra jewels to stay relevant.
DOJ, FCC clear Verizon buyout of cable companies' spectrum, require giving up some airwaves (update: not quite for the FCC)
Verizon has been fighting hard to get its acquisition of cable companies' wireless frequencies past legal hurdles, and it just surged over the most important of the bunch: both the Department of Justice and the FCC have signed off on the agreement. To get the $3.9 billion deal through the door, Big Red will have to offload some of its spectrum to other companies, the FCC argues. The DOJ, meanwhile, is more concerned that Verizon is getting a little too cozy with Bright House, Comcast, Cox and Time Warner Cable in terms of marketing and reselling bundles that include cellular and cable access. Closing the deal also requires setting up a new joint venture in technology research. We're still working to learn the full details of the deal, but the spectrum handover will likely give a swift kick to Verizon's 4G capacity -- and anger a few rivals who wouldn't have wanted any handover to go through. Update: Since we posted, it's become clearer that FCC chairman Julius Genachowski has only recommended a vote in favor of the deal; the agency hasn't formally greenlit the deal just yet.
Sprint lays out process for selling some iDEN assets, making iPCS happy
Sprint's fight with iPCS continues to wage on multiple fronts, all of which have been ongoing for eons -- especially the whole iDEN tussle in the wake of Sprint's merger with Nextel. Most recently, that little soap opera had seen an Illinois court rule that Sprint's got to divest some iPCS-controlled iDEN markets to bring it back into contractual compliance and restore Mother Nature's balance, and now Sprint's gotten around to announcing how that process is going to work. In short, it seems like a free-for-all -- the company has apparently put out a few feelers for buyers, but anyone it hasn't contacted is invited to hook up with Citi, who's managing the ordeal on Sprint's behalf. The carrier says that it expects everything to be squared away by January 25 of next year, which is when the court-imposed deadline falls; in the meantime, subscribers, stay cool, because Sprint says that service will continue uninterrupted and expects any transition to be seamless.
AT&T, Verizon swap wireless markets
We suppose you could think of AT&T and Verizon as football teams and wireless markets as high-priced players, because a few of 'em just got traded like the athletic pieces of meat that they are. It's no secret that Verizon had to offload some markets to satisfy government requirements following its Alltel buy, and AT&T has now agreed in principle to pick up about 1.5 million subscribers' worth of spectrum and equipment in 79 market areas -- mostly rural -- for some $2.35 billion in cash. In the other direction, Verizon will be cutting AT&T a check for $240 million in exchange for about 120,000 subs in five legacy Centennial markets -- contingent, of course, on the successful completion of AT&T's purchase of Centennial. Interesting moves, but it'll be even more interesting to see which move leads its team to the playoffs... er, you know what we mean. Read - AT&T agrees to acquire divestiture properties from Verizon Read - Verizon acquires certain Centennial Wireless properties from AT&T
Verizon asks for more time to spin off divested chunks of Alltel
In order to get the FCC to agree to Verizon's massive acquisition of Alltel -- the US' 5th-largest carrier -- it had to agree to some pretty serious concessions, including divestitures in a whole slew of markets to ensure that the competitive spirit remained intact. The "transaction" (as Verizon calls it) closed on January 9, and the resulting mega-carrier was given until May 9 -- a week from Saturday -- to finish spinning off the required markets. Well, as we all know, companies this large aren't known for their agility, and sure enough, Verizon is asking for just a little more time to dot its i's and cross its t's. A "Request for Extension of Management Period" has been filed with the FCC on behalf of the companies asking for another 60 days, which means the divested markets would be up and running outside of Verizon's control by July 8 of this year. Verizon blames "the sheer size and complexity of the divestitures coupled with the current economic conditions" for the request, but seriously, can't they just throw this all up on eBay for, say, a 5- or 7-day auction and be done with it? No? [Warning: PDF link]
Verizon willing to shed 15 percent of Alltel base to make merger happen
You've got to give a little to get a little, as they say, and giant, multinational joint ventures apparently aren't exempt from the mantra. In buttering up the ladies and gentlemen of the FCC enough to approve the takeover of Alltel, Verizon Wireless has agreed to spin off 85 markets' worth of Alltel subscribers in 18 states, which tallies up to about 15 percent of its 13 million-strong base. The move is designed to preserve competition, particularly in rural areas where some customers could suddenly find themselves with just a single carrier in town with enough signal strength to get the job done. There's still no telling whether the FCC will ultimately approve the move -- it could demand additional concessions or strike it down outright -- but it's a start.[Via Phone Scoop]
