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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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400 clicks; posted to STEM » on 04 Aug 2021 at 4:15 PM (24 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2021-08-04 4:24:23 PM  
3 votes:
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 4:13:29 PM  
2 votes:

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 4:41:55 PM  
1 vote:

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 5:54:06 PM  
1 vote:

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.
 
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