I have a hard time thinking that Qwest would be taken over, but if its going to happen it had better be soon. Every day it gets more expensive. Why would a telecom buy another telecom that has redundent systems such as commerce and home long distance. Its a huge price to pay for simple fiber backbone. LVLT would be a much better aquisition, and one LVLT wouldn't mind, I think.
Metromedia is another kettle of fish. It is in a market that has more competition, and I think it could be taken over, hopefully by Qwest. That would give Qwest entry into the infracity markets that MFNX has large presence in, if not last mile, close to it.
One last note. I have been thinking about the GBLX/FRO deal. I think that in the balance this has a major flaw. GBLX bought this with stock that, by any measure, is vastly over valued. FRO sold out for two birds in a bush instead of a bird in hand. If GBLX has any glitch, the value that FRO sold out for goes away. They appear to be another Amazon.com. Lots of stock value but no money. I can foresee a problem when this deal tries to upgrade. No one is going to give them a large loan based upon over valued stock, especially if we have a correction.
Qwest, on the other hand, is solid. I'll bet that Qwest comes out on top in the end. Personally, I think that GBLX/FRO have just put themselves up for a buyout.
Comments, as always, are welcome as long as they are not like the Yahoo insult thread. |
