This week for “Wireless Wednesday” we’re talking about the AT&T acquisition of Leap Wireless. Take a look at the excerpt from @FierceWireless pasted below–
AT&T Mobility (NYSE:T) will acquire no-contract wireless carrier Leap Wireless (NASDAQ:LEAP) for $1.2 billion, or $15 per share. The deal will give AT&T approximately 5 million prepaid subscribers, a network in 35 states and access to more spectrum. Leap currently has about $2.8 billion in debt. AT&T currently has about 107.3 million subscribers.
AT&T said it will acquire all of Leap’s stock and wireless properties, including spectrum licenses, the company’s CDMA and LTE network assets, its retail stores and customers. The deal includes spectrum in the PCS and AWS bands covering 137 million POPs.
AT&T plans to use Leap’s unused spectrum to expand its LTE network and also provide additional capacity to its existing network. AT&T intends to keep the Cricket brand and offer those prepaid customers access to AT&T’s network.
The deal doesn’t come as a huge surprise as Leap has been rumored to be looking for a buyer for some time. In addition, a report issued in early June by research firm Pyramid Research named Leap a “likely acquisition target.” However, just earlier this week rumors were circulating that T-Mobile US (NYSE:TMUS) or Dish Network (NASDAQ: DISH) were the likely buyers of Leap.