Frank;
Armstrong would obviously disagree with your assumptions. Perhaps high risk (maybe not as high as initially appears) , but a potential jackpot.
On a pro forma basis, before considering synergies, the company projects that AT&T Consumer Services could have 1999 revenue of approximately $33 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $7 billion to $7.5 billion. AT&T and TCI anticipate their merger will result in increased revenue and lower costs, producing synergies of approximately $2 billion per year beginning three years after the merger closes. For example, the merger is expected to improve TCI's cable service penetration and improve customer retention for AT&T's consumer long distance service. It will also help reduce the charges AT&T pays to local telephone companies to handle long-distance calls and allow both companies to reduce their respective customer care, billing and advertising expenses.
AT&T itself will remain the world leader in business communications services and become the leader in wholesale networking services. On a pro forma basis, the company projects its 1999 revenues from those >businesses could exceed $29 billion and its EBITDA could reach approximately $12 billion. AT&T will continue to provide global communications, outsourcing and systems integration services to more than 15 million businesses and institutions.
It will own and operate the world's most extensive and advanced communications network, the nation's largest wireless infrastructure, and, following the pending acquisition of TCG, a local access network reaching more than 250 cities from coast to coast.
"AT&T is now better positioned for growth," said Armstrong. "When this transaction is completed, AT&T will be the undisputed leader in three of the fastest growing segments of the communications services industry - consumer, business and wholesale networking services."
Rap |
