Telecommunications

Iliad’s Polish jaunt could become an odyssey

21 September 2020

The French telecom firm is offering $4.2 bln for Play, the eastern European nation’s top mobile operator. Despite the 39% premium, Chairman Xavier Niel is hardly overpaying. The bigger worry is the cost of completing his target’s journey from mobile upstart to multi-media player.

Verizon $6 bln deal marks return to wheelhouse

14 September 2020

The U.S. telecoms group is buying Tracfone, a prepaid cellphone business. Past media acquisitions like Yahoo have not panned out. Boss Hans Vestberg is steering the $257 bln Verizon back toward what it knows best. It’s a different course from the one chosen by rival AT&T.

Nvidia’s $40 bln Arm deal is risky chess move

14 September 2020

The chip specialist led by Jensen Huang will buy the UK company from SoftBank in the industry's biggest deal. It gives Nvidia a boost in the data centre business. But Arm's customers and regulators may baulk, and the chunky price tag presupposes huge growth and market share gains.

Drahi’s Altice debt pile may hinder cheeky buyout

11 September 2020

The Franco-Israeli billionaire wants to take his European telco private. His offer, which values Altice’s equity at 4.9 bln euros, looks low. But the company’s eye-watering leverage, with 30 bln euros of debt, makes it hard for Drahi to pay a more respectable valuation multiple.

Russian conglomerate finds discount hard to shake

3 September 2020

Sistema wants to put a value on resilient companies such as online retailer Ozon and wood pulp maker Segezha. That’s logical: the $2.7 bln group trades at a hefty discount to its investments. But its oligarch owner, poor governance and sanctions noise are lasting burdens.

SoftBank divestitures set stage to shop again soon

1 September 2020

Offloading a 22% stake in the Japanese telecom arm will help reach a $41 bln fundraising target set in March. Chip designer Arm may go too. Prodding from Elliott has helped SoftBank shares more than double, but boss Masayoshi Son is a buyer at heart. He must be getting itchy.

Telecom Italia network spinoff is imperfect

1 September 2020

Selling a chunk of its grid to KKR for 1.8 bln euros should help the operator fund investment in faster connections. Other indebted European telcos may follow. But a messy merger with state-backed rival Open Fiber risks choking competition and stalling Italy’s broadband upgrade.

AT&T could turn DirecTV sale into a two-parter

31 August 2020

The U.S. telecom may ditch its shrinking satellite pay-TV unit. The most logical outcome is a merger with rival Dish, but AT&T boss John Stankey already has his hands full without taking on a new antitrust battle. A sale to private equity could be a smart way to bridge the gap.

Reliance ties golden bow onto its shopping deal

31 August 2020

Mukesh Ambani is bulking up in a fight against Amazon by acquiring retail businesses from Future for $3.4 bln. Kishore Biyani’s outfit first needs shareholder approvals to consolidate assets. His terms are only so-so, but Reliance buying into the rump should help secure checkout.

The Exchange: Telecoms mogul David McCourt

25 August 2020

The pandemic has made connecting rural areas a global priority. The Irish-American cable entrepreneur explains to Aimee Donnellan why he returned to Dublin to roll out a 3 billion euro broadband programme, and how the Covid-19 crisis created an opportunity to transform business.

BT would be high-risk private equity double play

24 August 2020

The UK telecoms group is bolstering its takeover defences, according to Sky. Political baggage and a 10 bln pound pension gap help its cause. But depressed shares point to breakup potential, and a new owner may think it can manage BT’s daunting long-term investment needs better.

Cable Cowboy makes pricey Swiss return call

12 August 2020

The Alpine arm of Liberty Global, founded by billionaire John Malone, is paying $7.4 bln for telco Sunrise a year after a deal to sell to it fell apart. This trade is riskier, and more expensive. But the logic of creating a rival to state-backed Swisscom justifies the reversal.

SoftBank lives the high life on yard sales

11 August 2020

The $129 bln group returned to profit last quarter, buoyed by a T-Mobile stock sale and other investment gains. Asset sales fuelled share buybacks that narrowed a wide group discount, and there are large Vision Fund exits to come. Boss Masayoshi Son can keep coasting for now.

Corona Capital: PizzaExpress, Aerospace pain

4 August 2020

Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.

Amazon points profit-incinerating ray at the sky

31 July 2020

Jeff Bezos’ $1.6 trillion firm will spend at least $10 bln to build a global broadband satellite network. Elon Musk’s SpaceX already has similar plans. Customers may benefit from the rivalry, but if the earthbound tech sector is a guide, it’s not clear that either company will.

Corona Capital: Pinterest, Tech heaven

31 July 2020

Concise views on the pandemic’s corporate and financial fallout: Pinterest offers a window into advertisers’ souls, while tech giants’ valuations soar.

Three-pronged Brazil mobile assault can succeed

28 July 2020

Telecom Italia, Telefonica and America Movil have offered $3 bln to buy the wireless business of bankrupt Oi. With an established presence in Brazil, the three have an edge over a rival private equity offer. With the price already full, however, a bidding war could get costly.

China’s Huawei holds a 5G trump card

27 July 2020

The telecom kit maker’s stack of next-gen wireless patents will be essential as a global standard for 5G emerges. So even as Vodafone and others ditch Huawei hardware, they might end up licensing its intellectual property, and doing so on Chinese terms. That could be punishing.

Vodafone tower IPO may only unlock stunted value

24 July 2020

CEO Nick Read will float the telco’s mast unit in Frankfurt. The division could be worth up to 18 billion euros, which would boost the overall group’s equity value by 25%. But Read may only list a small chunk and growth prospects are uncertain. That points to a lower valuation.

AT&T boss has a lot to juggle

23 July 2020

The $215 bln U.S. telco is seeing steady mobile growth, if customers who currently can't pay start doing so again. DirecTV, though, is deteriorating fast. And other areas – sports, movies and TV production – are in Covid-19 disarray. John Stankey has his work cut out.