AT&T to Acquire Prepaid Carrier Leap Wireless/Cricket for $15/Share

Discussion in 'iOS Blog Discussion' started by MacRumors, Jul 12, 2013.

  1. MacRumors macrumors bot


    Apr 12, 2001

    AT&T has agreed to acquire Leap Wireless, the parent company of prepaid U.S. wireless carrier Cricket, for $15/share -- roughly $1.2 billion in cash, plus the $2.8 billion in net debt that the company holds.

    The company has 5 million subscribers, and AT&T will keep the Cricket brand and retail stores operating. Last year, Leap engaged in a three-year agreement with Apple to sell iPhones.
    The transaction is expected to be closed within six to nine months.

    Article Link: AT&T to Acquire Prepaid Carrier Leap Wireless/Cricket for $15/Share
  2. AHDuke99 macrumors 68020


    Nov 14, 2002
    Charleston, SC
  3. Small White Car macrumors G4

    Small White Car

    Aug 29, 2006
    Washington DC
    I'm sure cynics will disagree, but I suspect AT&T won't change much about Cricket. This gives them the ability to gain price-sensitive customers without diluting the AT&T brand with lower-priced plans. Absorbing or altering Cricket would destroy that opportunity.
  4. lolkthxbai macrumors 65816


    May 7, 2011
    Excuse my ignorance but, why would AT&T, a GSM carrier, want Leap/Cricket, a CDMA carrier?
  5. UnfetteredMind macrumors 6502


    Jun 6, 2012
    I was just wondering myself what ATT will do with them. I guess time will tell.
  6. osofast240sx macrumors 68030


    Mar 25, 2011
    Spectrum for LTE
  7. smithrh macrumors 68020


    Feb 28, 2009
    Most likely spectrum. The customer base isn't the greatest, and as you mention, they use different voice technologies.
  8. hirshnoc macrumors regular

    Oct 18, 2007
    Whitefish Bay, WI
    I wonder if AT&T will use this to improve their, no probably not.
  9. shanmugam macrumors 68020


    Sep 24, 2008
    Blazer town!
    poor t-mobile

    t-mobile - they are left out distant fourth (with sprint bought with clearwire and cash from softbank take over)

    t-mobiles does not have lower frequency and no more spectrum ...

    and poor citizens us - we have one less choice!
  10. Xenomorph macrumors 65816


    Aug 6, 2008
    St. Louis
    Cool. Just keep inching closer to a monopoly...
  11. osofast240sx macrumors 68030


    Mar 25, 2011
    T-Mobile has more LTE up than Sprint. Cash was not Sprints problem.
  12. goobot macrumors 601


    Jun 26, 2009
    long island NY
    The company was deep in bankruptcy, buying them is a lot better in many ways rather letting them fall apart.
  13. zin macrumors 6502

    May 5, 2010
    United Kingdom
    AT&T still remains a monopoly from the old days, albeit a smaller one.
  14. brianFL macrumors newbie

    Oct 15, 2008
    Less competition, higher prices. What isn't to like?
  15. theBB macrumors 68020


    Jan 3, 2006
    Does that mean AT&T is planning to sell this "A Block" spectrum to another company? I wonder if that is because of an expected FCC requirement for approving the merger, as AT&T probably owns "B Block" spectrum in that area.
  16. winston1236 macrumors 68000

    Dec 13, 2010
    So they can eliminate all competition. One day there will be one american phone company
  17. Codyak macrumors 6502

    Apr 6, 2012
    Until they get broken up, again. :rolleyes:
  18. Breaking Good macrumors 6502a

    Sep 28, 2012
    And the cycle repeats itself.

    Somewhere along the way I'm sure we will have a massive government bailout at taxpayer expense because these monopolies will be deemed "too big to fail."
  19. mschmalenbach macrumors member

    Jul 22, 2008
    Paying effectively $4Bn ($1.2Bn in cash and taking on $2.8Bn in debt) for 5 million customers - that's $800 per PRICE SENSITIVE customer - did AT&T have some kind of mental flip-out?
  20. CEmajr macrumors 601

    Dec 18, 2012
    Charlotte, NC
    It's a about the spectrum. AT&T couldn't care less about their customer base. They were rapidly losing customers anyway.
  21. maxosx macrumors 68020

    Dec 13, 2012
    Southern California
    Actually the fact is smartphones are near saturation as seen by both Apple & Samsungs sales numbers. Therefore any loss of contract subscribers is a reflection of the current market conditions. While there's always room for improvement, AT&T is very adept at customer retention. They didn't grow to their present size without providing good customer service.
  22. alent1234 macrumors 603

    Jun 19, 2009

    Hspa and lte are just newer versions of CDMA anyway
  23. krravi macrumors 65816

    Nov 30, 2010
    ATT is very bad at customer retention.

    They just charged a 70 cent fee for no reason but to get their balance sheet up by $775 million. I quit out of spite. Was paying $140/month on my service. So I have negated 200 customers worth of 70 cent fee.

    The only reason ATT has a reputation is because of their coverage along with Verizon. Customers are just fodder for their balance sheets.
  24. AutoUnion39 macrumors 601


    Jun 21, 2010
    If AT&T and VZW are so bad, why have they been the only carriers having a net gain of subscribers quarter after quarter? Customer retention is so bad that they keep adding customers right?

    Why have TMobile and Sprint been loosing customers during the same period? Because they have terrible customer retention. Uncarrier just makes that worse because they have no incentive to stay, ever.

    If 70 cents is too much to pay, I hear not eating saves money in the long run too.

    AT&T and VZW have fantastic customer service. The opposite of your beloved TMobile, who has the worst customer service in the business.


    Spectrum and they have the money.

    Leap will probably be shut down eventually and the spectrum will be used for LTE and HSPA. Very similar to TMobile's MetroPCS merger.

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