NIHD Should Wait For Google And Delay Tower Deal
Long/Short Equity, Special Situations, Contrarian
Seeking Alpha Analyst Since 2012
Motley fool is out with an subscriber seeking campaign touting the end of cable television as we know it called, "THE $2.2 TRILLION WAR
FOR YOUR LIVING ROOM BEGINS NOW". And behind all the promotion is a clear picture of Google's (GOOG) not so secret initiative, Google Fiber. We have written on Google Fiber before here on SA, and we now think that NII Holdings (NIHD) should not do the tower deal because it may preclude a GOOG deal.
On July 8th, GOOG's Motorola Mobility unit and NIHD announced, "NII Holdings and Motorola Mobility Partner to Launch PRIP™ Push-to-Talk in the U.S." The companies are already working creatively together and GOOG has everything to gain from this initiative. We think this acquisition for GOOG would put it in an enviable position not replicable by any other telecom carrier because of GOOG's dominance in search and related advertising coupled with its newly minted fiber expertise.
Disclosure: I am long NIHD.
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