Feeds

Verizon and MCI to tie the knot

$6.7bn marriage - and on Valentine's Day too

  • alert
  • submit to reddit

Reducing security risks from open source software

Verizon and MCI are to tie the knot, according to a Valentine's Day announcement from the US. The deal is worth $6.7bn (£3.55bn) in shares and cash and Verizon has also agreed to take on board MCI's $4bn (£21.bn) debt.

In a joint announcement the happy couple said the deal "adds new strength to the telecommunications services both companies provide...[and] ensures that consumers and businesses will have a supplier with the financial strength to maintain and improve MCI's Internet backbone network".

"This is the right deal at the right time," said Ivan Seidenberg, Verizon chairman and CEO. "We have been evaluating a transaction with MCI for some time, and now we have the opportunity to reach an agreement at the right price that works for both companies and at a time when MCI is gaining momentum. It is a natural and logical extension of Verizon's strategy to transform our company to serve growth markets and offer broadband technologies.

The pair intend to save cash by driving efficiencies, increasing flow and pursuing new revenue opportunities.

With more than $71bn (£37.6bn) in annual revenues, Verizon is a great big hunk of telco with more than 210,000 workers.

But spare a thought for Qwest Communications International Inc.. It had originally offered $6.3bn (£3.3bn) for MCI, with reports over the weekend suggesting it had even raised its bid to $7.3bn (£3.9bn).

Still, better to have bid and lost, than not to have bid at all...plenty more telcos in the sea...anyway, MCI's not good enough for you etc. ®

Related stories

Verizon close to MCI deal - report
Qwest courts MCI for telecoms take-over
SBC to axe 13,000 jobs in AT&T merger

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.