SHARING AMERICA'S TECH NEWS FROM THE VALLEY TO THE ALLEY
by A.M. Watts
More, and more wireless consolidation taking shape
EDGEWATER, New Jersey –AT&T going after prepaid wireless market with the purchase of San Diego, CA based Leap Wireless International. Leap is serviced through the Cricket brand. The Deal is to cost AT&T $15 a share in cash, which Leap’s stock increased by 2.5% Friday, closing out the trading day out at $7.98. However, after-hours trading saw the stock move beyond $17 a share, more than doubling its price at Friday’s close.
AT&T roughly 5 million additional subscribers, retail stores, network assets, wireless properties and licenses, at a cost of about 1.2 billion.
Though Verizon remains as the number carrier in the US and 19th in the world, the purchase of LEAP increases AT&T’s wireless market share, which after losing the bid for T-Mobile, was the impetus to landing LEAP.
For more on this story see: http://newsroom.leapwireless.com/Press-Releases/AT-T-to-Acquire-Leap-Wireless-646.aspx