Verizon Alltel Merger?

Verizon is expected to pay eight times Alltel’s EBITDA (”Earnings before interest, tax, depreciation and amortization”).

Looks like Verizon is talking with Alltel in a possible buyout of the company. Alltel is America’s 5th largest carrier, so this would really give Verizon a boost in terms of subscriber numbers. The deal is said to cost Verizon around $27 billion - not exactly chump change.

According to Reuters : “Alltel was sold to private equity firms TPG Capital and GS Capital Partners, the buyout arm of Goldman Sachs for about $25 billion on November 16. Including debt, the price was about $27.5 billion.”

The Verizon Alltel Merger was of course denied by both parties, but that doesn’t mean they aren’t discussing it behind closed doors. Alltel, has been doing very well lately making this an irresistable offer for bigger cell phone companies. More details coming soon.

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