Telecom Industry Sees M&A Heating Up

July 16, 2013 09:42 by Clayton Reeves in M&A, Telecom  //  Tags: , , ,   //   Comments (0)

Earlier in June, there were several articles saying that telecom could be getting ready to see the biggest merger spree since 2006.  Here is a list of telecom acquisitions over the last two years.  In an article in the Kansas City Star yesterday, this school of thought was further supported.

AT&T offered $1.2 billion to buy Leap Wireless International Inc., adding motivation for smaller competitors such as Sprint Corp. and Dish Network Corp. to bulk up through deals of their own.  Additionally, this offer could create a bidding war similar to what was seen with Clearwire when Sprint and Dish fought it out in a bidding battle.  Verizon may be inclined to up the bidding for Leap simply to make AT&T pay a higher multiple.

Chetan Sharma, a wireless-industry analyst in Issaquah, Washington, said “Everyone below the top four is pretty much done [because of the looming consolidation], I don’t think they’ll exist beyond the next 18 months.”  

Now that would be some transformational change in the telecom sphere.

Read more here.

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