With leaked reports coming in of Verizon Wireless acquiring Alltel, it has been made official that the deal will go through for $28.1 billion creating the largest wireless company in the U.S. in customer numbers by putting Verizon at 80 million over AT&T’s 71 million.
The cash merger is a result of Verizon acquiring the equity of Alltel for about $5.9 billion and the net debt of $22.2 billion. The merger is expected to come full circle by the end of 2008 if the regulatory approvals go as planned.
The result of the merger will leave the customers with an expanded IN calling network and Alltel’s customers will have the option of downloading music over the air from the 3 million song library along with Verizon’s unique 30 day network trial policy. Not only will Alltel benefit from consumer oriented practices, they will be able to take advantage of the LTE technology which will put Verizon into the 4th generation line up in the next few years.
On the other hand, Verizon will benefit by penetrating the 57 markets that Alltel operates in and the 13 million customers that they service in 34 states. With both of the companies using a similar network, the transition will be easier for the customers and beneficial to both companies.
Alltel’s President and CEO, Scott Ford, will remain in his position until the merger is complete.