Actually, it was our fearless leader Arnie who said "NXTL nixes L3 deal; WCOM has fiber. Any questions? :-)". To be confused with Arnie is indeed a compliment.
I merely stated my opinion that WCOM and NXTL have clearly been in talks for a long time, going back to '94, when WCOM almost invested in NXTL. And that these talks have continued informally at the very least. With McCaw's no doubt sky-high asking price, WCOM has probably had a wait-and-see attitude while NXTL continues to prove itself and grow more valuable. Ebbers could have said, ok, we might pay your asking price, and maybe even more if it turns out you're worth it, but prove to us that your lofty goals are attainable.
I think a strategic relationship is more likely than an outright takeover, but if we do have a takeover, you can bet that it will be a sky-high price indeed. If it is a strategic deal or partial ownership, we'll still go considerably higher from here. Either way, it is a great time to be holding onto NXTL because we have the wireless industry consolidation to thank for giving us the push. And the downside risk is now a lot less than it was just a couple of weeks ago.
D. Kuspa |
