client login
Username
Remember Me
Forgot Password
Password
CATEGORIES
 
Local Media Blog [ 912 ]  RSS ATOM


Blog Home

Contact Kelsey

Bookmark this page



SEARCH
 


previous month  MARCH 2006  next month
s m t w t f s
4
18
19
26
27 28 29 30 31


BLOG ARCHIVE
 
RSS ATOM  Full archive
 
current month



RECENT ENTRIES
 
 
RSS ATOM


BLOGGERS
 
admin [ 0 ]  RSS ATOM
Carlotta Mast [ 0 ]  RSS ATOM
Charles Laughlin [ 101 ]  RSS ATOM
Greg Sterling [ 748 ]  RSS ATOM
John Kelsey [ 53 ]  RSS ATOM
Matt Booth [ 0 ]  RSS ATOM
Mike Boland [ 83 ]  RSS ATOM
Neal Polachek [ 27 ]  RSS ATOM


COUNTER
 
Visitors    378092
Online users 119
 



Mar 5 2006
Printable version  |  Email to a friend
AT&T to Buy BellSouth
According to a story in today's New York Times AT&T (formerly SBC) is near a deal to acquire BellSouth:

AT&T is expected to pay about $65 billion for BellSouth, the country's third largest phone company, which operates in a nine-state region in the Southeast. The price represents a 25 percent to 30 percent premium for BellSouth shareholders.

The Times is reporting that a deal may be announced as early as Monday. The combination would create (recreate) a communications giant with combined estimated Yellow Pages revenues of roughly $5.6 billion and approximately 3,800 sales representatives. Both AT&T and BellSouth have DSL partnerships with Yahoo! (both also have IPTV initiatives). AT&T has a market cap of $91 billion, while BellSouth is worth approximately $56 billion today.

There were numerous rumors of earlier, failed discussions between the two companies. And there has been considerable speculation in the recent past that the two companies would combine and spin off their directory divisions at some point in the future. It's not clear to me whether this deal, if it were to happen, would make that more or less likely. (My colleague Charles Laughlin would have a more nuanced perspective on that issue. However, telco parents have sold directory assets to pay down debt in many instances in the past.)

The Wall Street Journal (sub. req'd), says:

AT&T is targeting at least $2 billion in cost savings in BellSouth deal, said a person familiar with the matter Sunday ... The total equity value of the deal is at least $65 billion, plus the assumption of an additional $17 billion of BellSouth debt.

The two companies have a parternship in the newly re-energized YellowPages.com (and Cingular, to become AT&T wireless). And I could imagine a combined company becoming more active and making some intreresting online acquisitions to better position itself on the Internet. In fact I could imagine a fairly major acquisition in the search space.

We'll go into all aspects of the transaction, including the competitive implications, if it's confirmed, later this week.

________

More from Reuters, MarketWatch, USAToday and many others. Here's another N.Y. Times piece (reg. req'd) that has a great deal more detail and some additional features.

Thus far in my "career" as a blogger I have resisted the urge to use the term "grok." But now I break that solemn vow with: Om "groks" the deal.
 
Global Yellow Pages Blog , Local Media Blog
posted by  Greg Sterling at  12:36 | comments [1] | trackbacks [26]


BLOG COMMENT


posted by   Dick Larkin - YP Commando News  [ http://ypcommando ] Mar 5 2006 at 17:54
Do you remember at the Kelsey conference in November 2004 when SBC and BellSouth announced the acquisition of YellowPages.com?

Suhkinder Singh Cassidy, manager of Google's local business said that she believed that it was simply a step toward the tow companies merging.

Let's start a pool to bet when they will announced that they are seeking "Strategic Alternatives" to maximize shareholder value for their Yellow Pages directory business.

Assuming they could raise $15-$20 billion for their directory business, that would help pay for the telco deal.

More of my thoughts on the Yellow Pages Commando Blog .
 




ADD COMMENT
(*) indicates required fields
author (*) :
email address :
url :
 
  bold italic underline add hyperlink add email hyperlink centre unorder list order list add image quote emoticon smiles
 
comment (*) :

html code

ubb code

max characters : 2000

+
- +
-
characters remaining :
remember me :
 
 
 



The Kelsey Group, 600 Executive Drive, Princeton, NJ 08540-1528
Tel: (609) 921-7200 Fax: (609) 921-2112 EMail: [email protected]
Copyright© 2005 The Kelsey Group. All Rights Reserved.