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(Channel e2e)   Communications giant Lumen flips their landline business one year later for 5,500% profit to focus on phone technology people use this century   (channele2e.com) divider line
    More: Obvious, United States, Incumbent local exchange carrier, Kohlberg Kravis Roberts, Lumen Technologies, fiber network business assets, M&A deal number, Latin America, Apollo-Lumen ILEC deal  
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397 clicks; posted to STEM » on 04 Aug 2021 at 4:15 PM (17 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



9 Comments     (+0 »)
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2021-08-04 3:34:20 PM  
So who bought it? That's probably the real story.
 
2021-08-04 4:13:29 PM  

AlgaeRancher: So who bought it? That's probably the real story.


Apollo, which means they're going to either dismember it entirely or try to sell it off to either Charter, Comcast, or AT&T; both means will result in an ends that creates an ever-larger oligopoly with respect to the ISPs of the country.
 
2021-08-04 4:24:23 PM  
Subby clearly doesn't know what financial terms mean.

From the Farking Article:

Lumen is the former CenturyLink. The ILEC business serves 20 U.S. states. The deal's valuation is roughly 5.5 times the business unit's 2020 estimated adjusted EBITDA, which is below the valuation of most MSPs and CSPs these days. The low valuation is understandable, considering the local telco industry remains under pressure amid cord cutters and wireless service growth.

EBITDA means (yearly) Earnings Before Interest, Taxes, Depreciation, and Amortization.  Basically cash flow, or yearly profit before all that stuff.  Selling something at 5.5 times that is a very low figure, meaning they think it is a shrinking business, which is obvious.

It does not mean they bought it and sold it for 5.5 times what they paid for it, which is what subby seems to think it means.
 
2021-08-04 4:41:55 PM  

koder: AlgaeRancher: So who bought it? That's probably the real story.

Apollo, which means they're going to either dismember it entirely or try to sell it off to either Charter, Comcast, or AT&T; both means will result in an ends that creates an ever-larger oligopoly with respect to the ISPs of the country.


When AT&T was split back in '82, the regional infrastructure was split between NYNEX, BellAtlantic, BellSouth, Ameritech, Southwestern Bell, Pacific Telesis and US West.

Lumen held what US West's (NYNEX and BellAtlantic eventually merged to become Verizon, Southwestern Bell systematically ate everything else and renamed itself AT&T).
 
2021-08-04 5:30:27 PM  
Nuts, I just finished re-labeling all the CenturyLink fiber drops to Lumen ID #s.  Last week.   They'd better be used to me calling them by the wrong name, 'cause I'm not going to go back and re-do everything for a while.
 
2021-08-04 5:54:06 PM  

Geotpf: It does not mean they bought it and sold it for 5.5 times what they paid for it, which is what subby seems to think it means.


Or even 55 (or 56) times (which is what 5500% corresponds to).  Major incomprehension plus math ineptitude. So, typical Fark.
 
2021-08-04 5:56:25 PM  
DarkTrance , depends on where you live.  They sold off 20 states and retained 16.  They kept Arizona, Colorado, Florida, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.
 
2021-08-04 6:19:48 PM  

Kronnyj: DarkTrance , depends on where you live.  They sold off 20 states and retained 16.  They kept Arizona, Colorado, Florida, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.


yes, they're selling off their incumbent assets specifically, not the regional ones they inherited from Qwest/US West
 
2021-08-04 9:12:54 PM  

The Bestest: Kronnyj: DarkTrance , depends on where you live.  They sold off 20 states and retained 16.  They kept Arizona, Colorado, Florida, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.

yes, they're selling off their incumbent assets specifically, not the regional ones they inherited from Qwest/US West


I guess I can breath a sigh of relief since I have DSL / land line with CenturyLink (formerly Quest/US West) here in MN although I did get an email back in late April about an upcoming billing change which I guess is about the name change and a new account number.
 
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