AT&T To Acquire Time Warner For $85.4 Billion

AT&T has agreed to purchase Time Warner for $85.4 billion in a stock-and-cash deal that will merge AT&T's delivery networks with Time Warner's vast catalog of content. AT&T believes the combined companies will be able to save $1 billion per year once fully merged. The company says the acquisition will diversify its revenue mix thanks to the lower-cost, less-regulated content business from Time Warner. 

This will balance out the high cap-ex model currently run by AT&T and its wired and wireless networks, and DirecTV satellite service, which are all heavily regulated. The merger is said to have been approved unanimously by both boards, but will require regulatory approval from the U.S. Department of Justice and the FCC. The transaction is expected to close before year end 2017. 


Source: AT&T

AT&T’s Aio Wireless Will Become "The New Cricket"

AT&T will now merge Aio Wireless into Leap’s Cricket prepaid brand.

The good news is that not much is changing, at least for now. If you are an Aio Wireless customer, the only change you’ll see in the coming months is the new logo. You'll get access to the same network, same plans, and your same phone number. You also don’t need to change phones or update billing info.

When the Cricket and Aio brands are fully merged, you’ll be able to find retail Cricket stores and do shopping or ask questions. Until then you will receive support the same way you do now by dialing 611.

If you are a current Cricket customer, things will change significantly over time. For now, no need to change anything on your end but when you do Cricket will invite you into a new store to pick-up a new phone and plan.

Source: Aio Wireless (The New Cricket)

SoftBank Gets Closer To Buying T-Mobile

SoftBank is said to be in the final stage of talks with Deutsche Telekom to purchase its T-Mobile shares. 

SoftBank was considering using some of the shares of Sprint that it owns, to purchase the T-Mobile shares it wants to buy. But Deutsche Telekom is said to be holding out for cash instead of stock, and that has led SoftBank to visit 5 major banks, seeking to borrow the $19 billion that it needs to complete a deal for T-Mobile.

A Sprint-T-Mobile combination would provide a much tougher challenge for the top two U.S.carriers, Verizon and AT&T.


Source: Reuters

Sprint Preparing To Bid On T-Mobile USA

Sprint is working toward a possible bid for rival T-Mobile US people familiar with the matter said, setting the stage for a giant telecom merger that if permitted by regulators would leave the U.S. wireless market dominated by three big companies.

Sprint is studying regulatory concerns and could launch a bid in the first half of next year, the people said. A deal could be worth more than $20 billion, depending on the size of any stake in T-Mobile that Sprint tries to buy.

Source: Wall Street Journal

Verizon Wireless And Vodafone Discuss $100 Billion Plus Buyout

Vodafone owns a 45% stake in Verizon Wireless. This is a fact that rankles Verizon constantly. Verizon has tried a number of times to work out a deal to buy out Vodafone, but it hasn't been able to make the deal yet. According to the Wall Street Journal, Verizon and Vodafone have started up talks again to try to arrange a buyout.

The talks between the two sides had said to have fallen off recently, but apparently have gotten very serious. The report says that Verizon is looking to buy out Vodafone for "well over $100 billion"; word has it that the talks have gotten serious enough that Verizon has even been talking to multiple banks about the loans for around $50 billion it would need in order to complete the deal.

Earlier this year, the two sides were quite far apart with Verizon said to be pushing for a deal closer to $100 billion, while Vodafone was asking for something around $130 billion.


Source: WSJ

FCC Puts The Breaks On AT&T's Alltel Buy Out

The Federal Communications Commission today stopped the unofficial 180-day shot clock on its review of AT&T's proposed purchased of Atlantic Tele-Network's Alltel assets. The deal, first proposed earlier this year, would give AT&T wireless spectrum licenses in the 700, 850, and 1900MHz bands, network assets, retail stores, and 585,000 subscribers. 

According to the FCC, AT&T has not adequately explained how it will transition the Alltel customers from Alltel's service to its own. Without that information, the FCC cannot complete its review. The FCC says the review was on Day 175 out of 180. Verizon Wireless was forced to divest some of Alltel's assets when it purchased the company in 2008. Atlantic Tele-Network picked up some of the assets and continued to run them under the Alltel name. AT&T agreed to pay Atlantic Tele-Network $780 million for the spectrum licenses, assets, and customers. 

AT&T's Jim Ciccone, EVP of External and Legislative Affairs, said in a statement posted to ATYT's web site, "AT&T is ready, willing and able to make significant network investments in these rural territories to bring HSPA+ and LTE services to Allied’s customers, an investment that will not occur but for this transaction. AT&T has actively worked to address FCC concerns and will continue to work with the Commission until all issues are resolved."


Source: AT&T

Huawei Open To Buying Nokia

Huawei is looking at ways to grow its business, and acquisitions are one possible avenue it might explore. One company that has made its short list of targets is Nokia. "We are considering these sorts of acquisitions; maybe the combination has some synergies but depends on the willingness of Nokia. We are open-minded," said Richard Yu, head of consumer products for Huawei in an interview with the Financial Times. Huawei has faced difficulty finding traction in the U.S. with its telecommunications networking gear business, though its handsets have found space on the shelves of U.S. wireless network operators. Yu did not indicate that Huawei and Nokia are holding formal talks, nor did Nokia comment on Yu's remarks.

Source: Financial Times

Yahoo Reportedly Places Bid To Buy Hulu

Add one more name to the Hulu bidding war Yahoo!, which just announced plans to buy Tumblr for $1.1 billion, has made an offer on the video website as well.

The Web giant submitted a bid for the video site this morning, according to a person familiar with process. Other people looking to buy all or a piece of Hulu include:

• Directv,
• Time Warner Cable,
• William Morris Endeavor, along with with PE backer Silverlake,
• KKR,
• Guggenheim Digital,
• The Chernin Group

As AllThingsD reported earlier this month, Yahoo! CEO Marissa Mayer and COO Henrique De Castro have met with Hulu’s team recently for a get-to-know-you; Yahoo! had previously tried to buy a large stake in French video site Daily Motion, but that bid was stymied by the French government. Yahoo! declined to comment.

The question, as it always is with Hulu, is what its owners News Corp., Disney and Comcast are actually willing to sell, and at what price. The three media conglomerates provide the site’s most valuable programming, primarily via shows that have already aired on their broadcast networks. Disney and News Corp. have been at odds about the best way to manage the site for some time; Comcast gave up its management rights as a concession to Federal regulators a few years ago. (News Corp. also owns this website.)

In 2011, Hulu’s owners put the company up for sale and were looking for a bid of at least $2 billion; in exchange, they would offer content licenses that would run for two to three years. But they ended up pulling the site back off the sales block after a few months.

Last month, former News Corp. COO Peter Chernin submitted a starting bid of $500 million, with the understanding that he would be willing to pay more for extended licenses. Bloomberg first reported on the KKR and William Morris Endeavor/Silverlake bids today.

Hulu hasn't had a formal M&A process, but had asked prospective bidders to make an offer by Wednesday. That deadline apparently isn't a firm one, so it’s worth wondering if the field will grow more crowded before this over.

OtterBox Aquires Rival Casemaker LifeProof

OtterBox, which makes the top-selling protective case for smartphones, has announced the acquisition of LifeProof for an undisclosed amount.

News of the acquisition comes one day after a lawsuit filed by OtterBox against LifeProof for patent infringement was dismissed. OtterBox told the North Carolina Business Report that the acquisition was not related to the lawsuit or any settlement. Headquartered in San Diego, LifeProof also makes protective cases and accessories for smartphones and tablets.

Over the next 30 days, OttberBox will beginning incorporating the LifeProof brand into OtterBox’s product lineup. More information about product availability and alignment will be available after that period. OtterBox currently has about 650 employees worldwide, while LifeProof, which was founded in 2009, employs about 250 people, who the companies say will remain in their San Diego location “for the foreseeable future.”

“Our strategy is to utilize our combined brand momentum, and world-class talent to create a great customer experience that generates OtterBox brand ambassadors for life,” Thomas said in the acquisition announcement.

In addition to its extremely durable smartphone cases, which are designed to withstand drops, water immersion and debris, OtterBox also makes protective coverings for other mobile devices such as tablets, as well as screen protectors and accessories. LifeProof’s cases are designed for people with very active lifestyles (or who are especially accident prone around mountains, concrete and bodies of water).


Source: OtterBox

Dish Network Reportedly Makes $2B Offer For LightSquared Spectrum

Dish Network is quite interested in entering the wireless business, and according to a new report, the company is now targeting LightSquared as a way to bolster its existing spectrum holdings. Source speaking to Bloomberg claim that Dish chairman Charlie Ergen recently offered to buy LightSquared's spectrum for $2 billion. The offer was reportedly made on May 15, and LightSquared's is said to have until May 31 to make a decision. Neither company has officially commented on the rumors, but the tipsters claim that LightSquared would use the funds to pay off its secured debt. 

LightSquared previously tried to build out its own 4G LTE wireless network, but the FCC shot down its plans to do so over concerns that its spectrum could interfere with GPS systems. Things went downhill from there, with Sprint ending its spectrum hosting agreement with LightSquared, followed by the company's decision to file for bankruptcy. LightSquared submitted new network plans with the FCC toward the end of 2012, but the federal agency has yet to approve that spectrum for use in a wireless network.

Meanwhile, Dish's spectrum has already been a go ahead by the FCC for use in a wireless network, and since then the company has been trying to find a partner to help it break into the wireless industry. The company has already made offers for Clearwire and Sprint, and now Dish apparently sees LightSquared as a good way to help it bolster its existing spectrum. Considering how desperate Dish has been to get into the wireless business, it's no surprise to see that it's now gunning for LightSquared's spectrum, especially after the issues that LightSquared has been having getting approval for its own network.

We'll have to wait until May 31 to see how this matter plays out, but it'll be interesting to see if Dish can snag LightSquared's spectrum and how that could influence Dish's potential deal with Sprint. It's also worth noting that Bloomberg's sources claim that Dish's offer is a "stalking horse agreement," which means that other company's could come in with a higher bid for LightSquared's spectrum. The next 11 days could be quite a bit more exciting than we'd previously anticipated, stay tuned for more details as they emerge. 

Source: Bloomberg

Sprint Gets Approval From SoftBank To Negotiate With Dish

Nearly a month after Sprint was given the ok from SoftBank to speak to Dish and gain more details about its $25.5 billion offer for the Now Network, it appears that the discussions are going to escalate a bit. Sprint tonight announced that it's received a waiver from SoftBank to discuss "non-public information" with Dish and to hold negotiations regarding Dish's bid for Sprint, two things that Sprint was not allowed to do during its previous talks with Dish.

Sprint also reminds us in its announcement that, as part of the terms of its deal with SoftBank, it can end its agreement with the Japanese carrier in order to pursue a better offer. Sprint is quick to point out that it hasn't yet determined if Dish's offer is superior to SoftBank's, though. The No. 3 carrier also says that its board of directors still supports its existing deal with SoftBank.

Sprint originally entered into an agreement with SoftBank late in 2012 that, if completed, will see the Japanese carrier dropping $20.1 billion for a 70 percent stake in Sprint. Dish then surprised most everyone with its own $25.5 billion offer for Sprint in April 2013, and since then Sprint has been contemplating the bids while SoftBank and Dish exchange comments about whose offer is superior.

Exactly how this whole situation will play out is still a mystery, but SoftBank's bid for Sprint did recently get approval from the SEC, and Sprint's shareholders are now scheduled to vote on the offer on June 12. SoftBank also expects the deal to close on July 1. Meanwhile, Dish is still fighting for its offer, and the company has even put in a $2 billion offer for LightSquared's wireless spectrum that could increase the odds of its bid being selected. If you were Sprint, which offer would you choose?

Source: Sprint

DirecTV Consider Bid For Hulu

DirecTV is weighing a potential bid for Hulu, the latest company to show interest in the six-year-old video site, according to a person familiar with the matter.

Hulu’s owners, including Walt Disney Co., News Corp., and Comcast Corp., are considering various strategic options for the site including a sale. Other firms that have bid or expressed interest in Hulu include cable operator Time Warner Cable Inc., Guggenheim Partners, Yahoo Inc. and former News Corp. president Peter Chernin’s investment group.

Yahoo Rumored To Be In Talks To Buy Tumblr For $1 billion

Yahoo is rumored to be on the verge of shelling out $1 billion for hosting site Tumblr. This could easily be a win-win deal as Yahoo needs the infusion of young blood while Tumblr is looking for liquidity. There is speculation that Yahoo CEO Marissa Mayer has had her eye on the company for a while and has already met with its executives including Tumblr founder and CEO David Karp.

Tumblr has raised $125 million at a valuation of $800 million, so a $1 billion price tag would certainly be in the ballpark, especially since the microblogging site starting adding mobile ads to its mobile app in March. Over the past 6 months, the number of those using Tumblr's mobile app has quadrupled. Tumblr's growth is right now off the charts. The company had $13 million in revenue last year and is expecting as much as $100 million this year.
Yahoo has been shutting down many of its mobile apps and one estimate is that 80% of the company's apps could be gone by the end of the year. But a purchase of Tumblr would add a mobile app that could revitalize Yahoo in the mobile space, where it has yet to make a name for itself.

According to sources close to the situation, the Yahoo board plans to meet Sunday night to decide whether to approve a $1.1 billion all-cash offer for New York-based blogging site Tumblr.

Source: AllThingsD

T-Mobile USA Targeted In Private Equity Buyout

T-Mobile USA is being targeted by former telecommunications executive Sol Trujillo, who is trying to generate enough interest among private equity firms to buy all or part of the carrier, according to a Bloomberg article. The report, which cited unnamed sources familiar with the matter, said that so far Trujillo's attempts to develop interest in such an acquisition have been unsuccessful. 

Trujillo, who used to head  U.S. West Communications, Orange and Telstra, has talked with the Blackstone Group and KKR about a bid, though the firms are skeptical of any deal. All of the parties declined to comment, Bloomberg said. AT&T's $39 billion acquisition of T-Mobile fell apart last year amid resistance from regulators. 

Deutsche Telekom remains open to a whole or partial sale of the company, the report said, but noted that a sale to private equity firms has not been discussed by the German company's board.

In May Deutsche Telekom CEO Rene Obermann said it was unlikely DT would try to sell T-Mobile again following the collapse of the AT&T deal. "We continue to look for a long-term solution to improve earnings in our U.S. business," Obermann told shareholders at Deutsche Telekom's annual general meeting. "However, a complete sale like the one to AT&T is considered unlikely."

Interestingly, the DT chief also said at the time that the company was not excluding "any option for the T-Mobile unit in the U.S., also not a merger." Obermann said the company was exploring ways to increase its return on capital or reduce its capital investment in the market, and is looking at other partnerships and other unnamed "non-organic steps."

T-Mobile is embarking on a $4 billion network upgrade to launch LTE next year on its 1700 MHz AWS spectrum and refarm its 1900 MHz PCS spectrum for HSPA+ services. The company received AWS spectrum from AT&T as a result of the collapse of the deal, and is now trying to swap AWS spectrum with Verizon Wireless. Spectrum is seen as T-Mobile's most valuable asset. Meanwhile, the carrier is trying to sell off its 7,000 U.S. towers, most likely to a tower company, with Crown Castle reportedly the lead bidder.

Curiously, the Bloomberg report also said that Trujillo has also sought private equity firms to fund a buyout of Sprint Nextel. However, such a deal is considered highly unlikely; Sprint declined to comment, according to Bloomberg.

"Financing is cheap right now. But even though it's possible, it doesn't mean that such a deal is going to happen," Tom Taulli, a consultant for mergers and acquisitions, told Bloomberg. "We've not seen many $10 billion-plus leveraged buyouts anywhere."

AT&T Pursuing Leap Wireless Purchase For Its Spectrum

AT&T has made no bones about its need for more wireless spectrum, and now that it can't acquire T-Mobile, it's considering a myriad of options to fill in the gaps. The Wall Street Journal is reporting that the company is in the midst of talks with Leap Wireless, which owns the more well-known brand Cricket, saying that the two sides "have been engaged in talks about a potential deal." The talks are apparently the result of a rapport the two companies built up when AT&T was considering selling Leap some spectrum to make the T-Mobile acquisition more palatable. Though any potential deal is reportedly months away, it could remove one of the more successful smaller carriers from the marketplace.

It's no surprise that AT&T is looking at all options, including possible deals with MetroPCS and even Dish Network, which recently tussled with AT&T in FCC filings over its own wireless plans. Dish might not be interested in selling, the WSJ reports, and MetroPCS is also apparently not looking like a likely partner.

While AT&T's spectrum crunch is a problem, it has to be said that the company is still managing to roll out LTE fairly well in the short term. Compared to T-Mobile (which hasyet to detail any clear LTE plans) and Sprint (which has to now manage without LightSquared's network), the situation could certainly be worse.

Microsoft and Nokia also casually considered jointly buying RIM

Amazon casually considered a bid for troubled BlackBerry maker RIM this summer, and apparently it wasn't the only one. Now, the Wall Street Journal's anonymous sources report that Microsoft and Nokia "flirted with the idea" of teaming up to buy RIM, too. The Journal suggests that this wasn't anything more than a simple idea that came up at one of the regular meetings between senior executives from all three companies — perhaps it could have even been a joke — but it's still pretty crazy to imagine Microsoft and Nokia executives pondering how profitable it might be to divide RIM's businesses and intellectual property among themselves

Verizon is very serious about potential Netflix bid

Mediatech Capital managing partner Porter Bibb believes Verizon Communications is seriously considering making a bid for Netflix. Rumors swirled around recently suggesting that Verizon may team up with the kiosk movie rental service Redbox in 2012 to create its own streaming service to compete head-to-head with Netflix, although perhaps Verizon Communications is considering a different strategy. “I am hearing rumblings from inside Verizon that they are very serious about either Netflix or something similar,” Bibb told Bloomberg on Tuesday. Verizon CEO Lowell McAdam confirmed earlier this month that the company is looking to enter the steaming-video space in an effort to bolster its FiOS offering.

Is a Comcast or Google buyout in Sprint's future

I happened to have an interesting conversation with a Sprintengineer today. This gentleman had a very interesting point.

His point was what if the T-Mobile/AT&T merger does gothru (by some odd chance)? That would put Sprint still as the number threecarrier, but far behind the likes of Verizon and AT&T.  

Not to mention the $15.5M iPhone deal Sprint just inked, networkvision's estimated cost of $7B, and don’t forget the $13B Lightsquared deal. Now withall of this said, Sprint has made it known publicly that they will have to raise$5B-$7B in cash flow to be able to fund the three deals they have committedto. 

Does this make Sprint a prime candidate for asale/buyout.

The first candidate that was tossed around in ourconversation was Comcast, the point that was made Comcast has beenlooking to venture out into the mobile world for some time now.

The second being Google, mind you Google has its ownoperating system Android that has been nothing but a success; just boughtMotorola mobility all Google needs now is a phone manufacture.

The question that come up…. Will Sprint be a prime candidatefor Google or Comcast if the T-Mobile/AT&T merger goes thru?

Sound off, leave us your comments. What do you think? Could there be any truth the the meaningless talk?