More on AT&T/Leap: AT&T is paying $1.18B for Leap's equity, and assuming $2.8B in net...


More on AT&T/Leap: AT&T is paying $1.18B for Leap's equity, and assuming $2.8B in net debt. Leap shareholders will also receive net proceeds from the sale of spectrum Leap bought for $204M last August. Leap has 5M prepaid subs on a network covering 96M people, and AT&T says it will keep the Cricket brand and expand its reach. But this deal is mostly about acquiring Leap's spectrum (covers 137M people), much of which is unused and could be of use in AT&T's 4G buildout, especially in urban areas. Expect the FCC to closely scrutinize the deal; will new leadership yield a different outcome than the one for the T-Mobile deal? LEAP now +106.5% AH to $16.48, investors are betting on a higher bid. TMUS +4.1%. T -0.4%. (PR)

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Comments (3)
  • Bill Maurer
    , contributor
    Comments (7060) | Send Message
     
    Shareholders are LEAPing for joy! Now trading at an 11% premium to deal price.
    12 Jul 2013, 05:29 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1571) | Send Message
     
    I wonder why ATT is paying such a huge premium. They might be doing that as a signal to DISH not to mess with their acquisition.
    12 Jul 2013, 05:59 PM Reply Like
  • bearishly
    , contributor
    Comments (13) | Send Message
     
    $4B EV = 2.8B Net Debt + 1.2B ($15 * 79M shares)
    ~2.2GHZ-POP = 23 MHZ average * 98 POPs

     

    So $1.81/MHZ-POP... Not sure if that's cheap or expensive. Don't know how much of the spectrum is PCS ($4/MHZ-POP) versus AWS ($1/MHZ-POP). And they have 5M subs.
    13 Jul 2013, 04:06 AM Reply Like
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