AT&T acquires Iusacell for $2.5 Billion

AT&T acquires Iusacell for $2.5 Billion

AT&T acquires Iusacell for $2.5 Billion

AT&T agreed to acquire third biggest mobile service provider in Mexico Iusacell for $2.5 Billion including debt.  The deal comes  five months after AT&T sold its América Móvil stake because of buying DirecTV for $48.5 billion. Iusacell, which with 8.6 million customers owns 70 percent of Mexico market.

 Beginning of transaction was shortly after the selling América Móvil stake. Grupo Salinas still doesn´t own, wants to upgrade the phone carrier’s network to faster wireless data speeds would need next large investments.

 One of long-time concerned companies to buy Iusacell was Vodafone of Britain. After that, but interests switched on Mexico and other Latin American countries. This move is more attractive, because of possible investments in telecomunications industry by president Enrique Peña Nieto.

“We just think over the long haul that the global telecommunications marketplace will continue to scale,” John Stankey, AT&T’s chief strategy officer, said in a telephone interview.

AT&T predicts that its transaction will close in the first three months of next year, expecting approval by Mexico’s telecom regulator.

 After regulatory reforms, growing middle class, growing population and economy make investment more attractive.

Friday’s deal is contingent on Salinas closing on its acquisition of full control of Iusacell from its partner in the business, Grupo Televisa, for $717 million.

 Mr. Stakebay says:

This move is completing AT&T strategy – diversification its revenue by moving into foreign markets and focusing on phone and high-speed wireless data services and creates first North American Mobile Service area with 400 million Mexico & U.S. consumers.

CEO of AT&T…………………….Randall L. Stephenson ……..(2007-present)….$26 000 000 (2013)

President and CEO of IUSACELL………Carlos Espinal………(2002-present)

AT&T

IUSACELL

Revenue

US$ 128.752 billion (2013)

-

Operating Income

US$ 30.479 billion (2013)

-

Profit

US$ 18.25 billion (2013)

-

Total Assets

US$ 277.78 billion (2013)

-

Total Equity

US$ 90.99 billion (2013)

-

Employees

91,272 (2013)

-

You Might Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>