AT&T Agrees to Buy Leap Wireless for $1.2B in Cash

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 12 (Bloomberg) -- AT&T agreed to buy Leap Wireless International for $1.2 billion, giving the company 5 million customers, more airwaves and a larger piece of the pay-as-you-go market. Julie Hyman reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

York for more on this.

We have a deal that gives at&t more customers.

Leap operates under the cricket ran name.

Those customers will be in that market.

As far as spectrum, the network covers about 96 million people in 35 states.

Also as part of this, there will be a contingent right to the net proceeds of sale of spectrum.

700 megahertz in chicago.

That was purchased last year for 200 million dollars.

At&t plans to turn around and sell it here.

15 bucks a share is what we are looking at, 88% higher than closing price today.

Shares have been rising recently.

There is been so much telecom consolidation this year.

Leap has really been left out up until now.

It is giving at&t 5 million subscribers.

Subscribers have been decreasing and the stock has been languishing, rising more recently on speculation that it would start to participate in all the consolidation.

$50 a share, the stock was at $6 a share.

Somebody made a lot of money on this.

The biggest holder is marc rich askey through his mhr management.

He is to work with carl icahn.

-- used to work with carl icahn.

John paulson is the third- largest holder here.

Rich askey controls a company with nearly 30% stake.

He turned down an offer back in 2007 that came from metro pcs.

The price then was $77.89 a share.

They could have made more several years ago.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change