The merger between AT&T and BellSouth (BLS) was no surprise to me. I have been reporting on the merger activity in the telecom and oil industies for quite some time. Here is one of the first articles I wrote about the telecom industry.
Here are a some others pieces I wrote about the future in telecom.
March 07, 2005
SBC Communications (SBC) & Verizon (VZ) It looks as if SBC and VZ will continue their buying spree until there is no competition left. The continuation of this merger activity will stunt the performance of each company. Once the buying spree ends, we will own the largest, strongest, and the most dominate telecommunication companies in the world. Until then, look at each stock as wonderful bond substitutes with big upside potential. Lets make a prediction. In the future, 10 years or so, the government will label SBC and VZ a monopoly. Each company will be forced to divest, and break off into baby bells once more. This time, the spinoff will include cable TV,and internet assets. Does history repeat itself? You betcha!
SBC Communications (SBC) & Verizon (VZ) VZ pursuit of MCI has me puzzled. The company is offering MCI around $23/ share, but offered MCIs largest shareholder, Carlos Slim $26/ share. Now was that stupid or what? Now VZ may have to go to court and pay all shareholders $26 even if MCI agrees to $23. If I were in charge at Verizon, I would let Qwest buy MCI, then turnaround and buy Qwest. It seems that the Baby Bells will continue to merge and buyout their competition until there is no competition left.
April 13, 2005
Before our own eyes we are seeing the monopolies of old come back together again. The break up of ATT is slowly being pieced back together again. Once the buying spree ends, we will own the largest, strongest, and the most dominate telecommunication companies in the world. The share price will skyrocket; the government will label the company as a monopoly. The other area that is slowly become a monopoly again is the oil industry.
The question that remains is, is this merger activity good news, or bad news for the economy.
