Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: JM who wrote (4326)	4/30/1999 7:33:00 AM
From: limtex	Respond to of 11568

JM and KR - I don't agree that it is an MCI move. 1. MCI was developing a last mile solution. Lst mile gives you the customer and retains him. 2. It is totally wrong to compare a NXTL acquisition with the MCI acquisition . MCI was very profitable and very valuable. It was the number two overseas carrier and the next below that was much much smaller. Alos MCI was fat, laden, ripe with overhead and salaries that would provide additional boost to the bottom line for years as they were cut back. MCI had its own fleet of corporate jets as well as a whole slew of synergy savings. All this lot cost about $36bn as I remember it and that was last year. 3. Now WCOM is being prepared to pay about 30% of that huge figure on a business that has nowhere near the standing or opportunity or safety factor that MCI had. WCOM is in effect bailing out NXTL. The mobile business is highly competitive and its going to get even tougher. 3G is around the corner and thats going to cost $??bn. What does the NXTL balance sheet look like compared to MCI's? I really think this is an ill advised acquisition and that WCOM should continue to pursue the last mile solution pioneered by MCI (even before AT&T decided to build one). That would give WCOM a very solid footing with massive growth and to quote Bill Rouhana wireless is like ADSL on steroids. Regards, L

To: JM who wrote (4326)	4/30/1999 9:26:00 AM
From: John F. Dowd	Read Replies (2) \| Respond to of 11568

JM: NXTL: Doesn't need to be turned around. They are currently cash flow positive and earnings (on an accrual basis) are always going to be negatively impacted by the furious build out program that NXTL has undertaken. MCI will help in that the overall debt rating should go up. That is NXTL debt will be upgraded MCI will be downgraded but less than the upgrading of NXTL. It just pains Ebbers to have to pay for his earlier misstep of not moving more quickly in the wireless area. JFD