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LR Losing Alltel

astrife

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Aporkalypse City

Aporkalypse

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Terribly inaccurate title for the thread.

With a private equity buyout it is very unlikely the company would move anywhere, the buyers are just hoping to milk all of the cash the company is producing. Large private equity companies know nothing about telecommunications. For instance, Stephens owns Viking Appliances. The entire operation continues to be based in Mississippi but Stephens reaps the profits. TXU is currently undergoing the largest private equity buyout ever. It will still be a Texas-based company.

Even if the buyers decide to sell the company at some point, they very well may choose to make it public again by having an IPO to generate cash.

If Verizon had bought Alltel it might've probably meant some jobs moving, maybe eventually all of them. Fortunately the price for Alltel was too high for Verizon to stomach.

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astrife Unincorporated Area

astrife

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Terribly inaccurate title for the thread.

With a private equity buyout it is very unlikely the company would move anywhere, the buyers are just hoping to milk all of the cash the company is producing. Large private equity companies know nothing about telecommunications. For instance, Stephens owns Viking Appliances. The entire operation continues to be based in Mississippi but Stephens reaps the profits. TXU is currently undergoing the largest private equity buyout ever. It will still be a Texas-based company.

Even if the buyers decide to sell the company at some point, they very well may choose to make it public again by having an IPO to generate cash.

If Verizon had bought Alltel it might've probably meant some jobs moving, maybe eventually all of them. Fortunately the price for Alltel was too high for Verizon to stomach.

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Architect Town

Architect

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WSJ is reporting that Alltel has been sold for $27.5B to Texas Pacific Group and the private-equity arm of Goldman Sachs.

What a bunch of chumps.....the executives eyeing their windfall no doubt - jobs, pride and stature have no place here I guess...just like the days of the large LR banks selling out. Nice article in the paper today about this very subject: which is "why?"

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skirby Town

skirby

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WSJ is reporting that Alltel has been sold for $27.5B to Texas Pacific Group and the private-equity arm of Goldman Sachs.

What a bunch of chumps.....the executives eyeing their windfall no doubt - jobs, pride and stature have no place here I guess...just like the days of the large LR banks selling out. Nice article in the paper today about this very subject: which is "why?"

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Architect Town

Architect

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WSJ is reporting that Alltel has been sold for $27.5B to Texas Pacific Group and the private-equity arm of Goldman Sachs.

What a bunch of chumps.....the executives eyeing their windfall no doubt - jobs, pride and stature have no place here I guess...just like the days of the large LR banks selling out. Nice article in the paper today about this very subject: which is "why?"

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Architect Town

Architect

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Charles Morgan heads Acxiom.

This is good in the fact that the HQ has a good chance of staying in LR.

The bad news is that they may cut the company up and sell parts of it and that LR is loosing one of its Fortune 500 companies.

Two billion dollar companies in LR being sold to private equity firms in a week. Man, there is a lot of money floating around with some people. Where is my share? Oh, Scott Ford and crew are going to get it.

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Aporkalypse City

Aporkalypse

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Okay...maybe I'm being a little harsh here. ABJ is reporting that one of the primary reasons they are selling is to gain access (by way of a new owner) to a large cash infusion to ensure that they are competitive in securing bids for new government voice/data frequency auctions within the year, which is pivitol to their long-term success. We'll see. Hopefully (and surely), the HQ will remain in LR.
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theman Hamlet

theman

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The 600 mHz spectrum auctions have been a major issue and Alltel had to participate or lose out. Hopefully the private buyer will push the company to acquire some smaller ones and it will grow. They're in this to make money and it has to grow to keep the cash rolling in.

That said, I bet that the private equity group eventually ends up selling Alltel at a premium to Verizon, AT&T, etc in a few years.

The company stays in LR for now but what happens in 10 years is anyone's guess and out of anyone's control from now on.

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arkansas_buff Whistle-Stop

arkansas_buff

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Charles Morgan heads Acxiom.

This is good in the fact that the HQ has a good chance of staying in LR.

The bad news is that they may cut the company up and sell parts of it and that LR is loosing one of its Fortune 500 companies.

Two billion dollar companies in LR being sold to private equity firms in a week. Man, there is a lot of money floating around with some people. Where is my share? Oh, Scott Ford and crew are going to get it.

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arkansas_buff Whistle-Stop

arkansas_buff

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Scott Ford said the HQ is staying in Little Rock and there will be NO major changes in the local workforce. The infrastructure developed by Alltel in LR would be far too costly to relocate. The bottom line is that the private equity company has bought Alltel as an investment with the intention of selling it to one of the "big 4" (AT&T, Sprint, Verizon, or T-Mobile).

The purpose of a business is to make money. Don't worry, it'll all work out for LR. Think of it this way... a couple BILLION dollars just flooded the LR market. That can't be all bad.

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EJC Whistle-Stop

EJC

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Scott Ford said the HQ is staying in Little Rock and there will be NO major changes in the local workforce. The infrastructure developed by Alltel in LR would be far too costly to relocate. The bottom line is that the private equity company has bought Alltel as an investment with the intention of selling it to one of the "big 4" (AT&T, Sprint, Verizon, or T-Mobile).

The purpose of a business is to make money. Don't worry, it'll all work out for LR. Think of it this way... a couple BILLION dollars just flooded the LR market. That can't be all bad.

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arkansas_buff Whistle-Stop

arkansas_buff

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Calm down. It was a joke. Scott Ford and crew are going to make big bucks out of this while the people at the bottom of the totem poll will get little to nothing in comparison.

All I was saying is that it seems that the rich keep getting richer, while the rest of us have to deal with thw price of everything going up while we get small salary increases.

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EJC Whistle-Stop

EJC

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Also... what do you mean by "the rest of us"? If you think what "they" have is going to make you happy, you have the ability to make it happen for yourself. ......

I should mention, however, that money certainly doesn't make you happy... the evidence is everywhere. I just makes you more of what you already are. Just my two cents.

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Mith242 Gigalopolis

Mith242

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Scott Ford said the HQ is staying in Little Rock and there will be NO major changes in the local workforce. The infrastructure developed by Alltel in LR would be far too costly to relocate. The bottom line is that the private equity company has bought Alltel as an investment with the intention of selling it to one of the "big 4" (AT&T, Sprint, Verizon, or T-Mobile).

The purpose of a business is to make money. Don't worry, it'll all work out for LR. Think of it this way... a couple BILLION dollars just flooded the LR market. That can't be all bad.

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Aporkalypse City

Aporkalypse

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I hope your right, but they often say things like this all the time and don't always stick to their word. I don't think they'll move it anytime soon. But 5-10 years down the road who knows. If they think it will be more profitable to have the HQ somewhere else then it's going to go.
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theman Hamlet

theman

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I hope I didn't come across as being upset by your comments... (probably due to my three question marks... sorry). Anyway, when people make millions of dollars, it doesn't leave less money for everyone else. The whole "pie" idea is flawed... in America, you have the ability to MAKE MORE PIE! It's not up to someone else to give it to you.

Also... what do you mean by "the rest of us"? If you think what "they" have is going to make you happy, you have the ability to make it happen for yourself. For example, I ran into a guy I graduated HS with in Wal Mart the other day. We got to talking, and come to find out... this guy was working in a factory at nights and buying rental properties during the day. He has 4 now and is working on his fifth. This is a dude that came from a mediocre background (by AR standards even) and below average grades in school. His plan is to keep going with the rental properties until he has 15 or 20 and then quit the factory. By that time, he should have over $1,000,000 in real estate.

I should mention, however, that money certainly doesn't make you happy... the evidence is everywhere. I just makes you more of what you already are. Just my two cents.

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CentralArkansas Whistle-Stop

CentralArkansas

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That was my point. That the pie, as you call it, is flawed. Scott Ford is going to make millions off of this deal and what do the average workers get.

Look at the airline industry. Those workers sacrificed by taking paycuts and many getting laid off to keep those companies afloat. As soon as the industry starts to make a profit management wants to give themselves bonuses while the workers get nothing. All I'm saying is it's not right.

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