Verizon buying Frontier??
14 replies (most recent on top)
It's not about the money, it's about the footprint that becomes a wedge in near future.
https://www.verizon.com/about/news/verizon-to-acquire-frontier
I don't think you realize they sold 3 states for 10 billion and getting their entire footprint for 20...nearly 8 years later. They crushed it.
Verizon is now offering 9.6 billion dollars as of end of 9-7-23.
I guess 20 billion dollars is off the table
2 days ago by Anonymous | 2 reactions (+1/-1)
Post ID: @2kmm+1umoDHpX
Every company seems to toss in "AI" into their BS spew about what the company has and does. Maybe the "AI" part was found to just be BS like at Lumen, so $10B for just fiber makes more sense. Fiber is a commodity item, it's no longer lucrative niche like it was when fiber 1st started to connect things.
Verizon is now offering 9.6 billion dollars as of end of 9-7-23.
I guess 20 billion dollars is off the table
Laughable to try and compare Verizon $174B stable market cap, to Lumen $5.5B unstable market cap. Lumen is not buying anything because it can't. The best Lumen can do is to try and use it's failing sales model leasing fiber.
glad to see the finance wizards are weighing in here.
facts: Verizon paying $20B including debt for Frontier. Verizon fold assets to Frontier for $10.54B in 2016. Frontier currently has $11.25B in debt which Verizon will refinance as part of the acquisition.
So not "buying it back for 5 billion", not "easy pickings" as Verizon is paying a 37.3% premium for Frontier's stock (pre-announcement).
And Lumen isn't buying Brightspeed back. a) why? b) with what? adding yet more debt to Lumen's overweight balance sheet?
Lumen to buy back Brightspeed next.
Frontier filed for bankruptcy back in 2020?
Their market value is 9.5 billion.
I would say they have billions in debt.
It's an easy picking for Verizon.
No debt? Frontier has over $11bn of long-term debt
What does Frontier have that Lumen doesn't? No debt...
Verizon is no dummy.
They sold it for 10.5 billion.
They'll buy it back for 5 billion.
"to boost fiber". Verizon is no dummy in this space.
https://edition.cnn.com/2024/09/05/tech/verizon-frontier-deal/index.html
What’s interesting is how a few years back Verizon sold off its FiOS assets in a number of states to Frontier. oops?
https://finance.yahoo.com/news/verizon-nearing-deal-frontier-communications-175129593.html