Will Sprint Purchase AWN as Soon as the Deal Closes?
Is Sprint now in a position to purchase AWN once the deal closes? Sprint needs a presence in AK to go against Vz and ATT. With the $21B deal with Softbank they now have the funds to enter the AK market. Could it be AWN? If so, premium there for ACS shareholders.
Both GCI and ALSK have to agree to a sale even though GCI has 2/3'rds voting rights. Selling AWS would leave both companies with a land line business in a state with 731,000 residents or 1.2 people per sq. mile.
The money now is in wireless. The major players are not looking for land line businesses saddled with union workers. In fact Verizon can't sell their landline divisions fast enough.
Buy these companies if you like the fundamentals because there will be no buyouts.
I'm surprised after all the buyout rumors of the past few years someone would still have the gall to bring it up again. Two new posters. One is one day old and the other only hours old. Gee I wonder who creates aliases daily all agreeing with one another?
Salmonalsk and fooledbyrandomness answered buy-out/sale question perfectly.
VZ had a roaming agreement for years with ACS before finally deciding to build its own AK network. Sprint could also sign an AWN roaming agreement without the regulatory hassles and multi-year delays of a purchase.
IMHO, ALSK should do nice one-time pop when AWN final regulatory approval announced.
Then it should do minor jumps accompanying release of first few quarterly earnings reports based on preferential payout arrangement.
Your statements don’t always make sense Fooled. “Alaska is such a small market it will not worth sprints effort to pay so much money.”
Vz is spending millions to enter the Alaska market. T is building their network out in Alaska. Is there a reason for this? Could it be the Oil & Gas industry? Tourism (tired of paying roaming charges to the local networks)? Government? All three of the majors have contracts with the feds and lord knows there is a large presence of government in Alaska. Has to be some reason the two majors are building their network out in this small market.
Far as GCI won’t be selling? GCI is one of the most logical business operators in Alaska. Money and opportunity talks for them. If the price is right do not fool yourself.... They will sell and Sprint just may be that entity that will pick up the best wireless network in Alaska.