Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



AT&T to Acquire Leap Wireless

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Leap Wireless (UNKNOWN: LEAP.DL  ) will no longer be an independent company. It has agreed to be acquired by telecom giant AT&T (NYSE: T  ) , both firms announced in a joint press release. The price is $15 per share in cash, for a total of around $1.19 billion.

For its money, AT&T will be the new owner of Leap's stock, wireless properties, network assets, and spectrum that covers a total of around 137 million people. It will also obtain its acquisition's chain of retail stores, and its roughly 5 million subscribers. Additionally, AT&T will have a contingent right to the net proceeds of the potential sale of a block of spectrum in Chicago that Leap acquired in August 2012 from Verizon (NYSE: VZ  ) .

A less-appealing facet of Leap's business AT&T will have to contend with is the smaller telecom's estimated $2.8 billion in debt.

Leap sells its retail offerings under the budget Cricket brand. Both firms said that AT&T will retain that name, and expand Cricket's offerings to other markets in the U.S.

According to AT&T and Leap, holders of nearly 30% of the latter's shares "have entered into an agreement to vote in favor of the transaction." In addition to such approval, the deal is subject to review by the Federal Communications Commission and the Department of Justice. AT&T believes it will close in six to nine months.

Leap's stock price more than doubled in after-hours trading following the announcement, from $7.98 per share to $16.90. Shares of AT&T were off slightly post-market, slipping by $0.01 (0.03%), to $35.80.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2535228, ~/Articles/ArticleHandler.aspx, 9/25/2016 1:59:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
LEAP.DL $0.00 Down +0.00 +0.00%
Leap Wireless Inte… CAPS Rating: *
T $41.28 Up +0.17 +0.41%
AT and T CAPS Rating: ****