Verizon Agrees to Acquire MCI for $6.6 Billion, Beating Qwest

[LiviaOlivia]

The New York Times
February 14, 2005
Verizon Agrees to Acquire MCI for $6.6 Billion, Beating Qwest
By MATT RICHTEL and ANDREW ROSS SORKIN

Verizon, the nation's largest regional phone company, reached a deal last night to acquire MCI for about $6.6 billion is cash and stock, the latest merger in the rapidly consolidating telecommunications industry.

~snip~

Verizon's acquisition would end the independence of MCI, the nation's second-largest long-distance company, with 14 million residential customers and about a million corporate customers.

Last year MCI emerged from bankruptcy protection and changed its name from WorldCom after nearly collapsing when an $11 billion accounting fraud was unearthed. MCI is a shadow of its former self, but its high-margin corporate customers and worldwide telephone and data network make it quite valuable.

MCI became the subject of a torrent of takeover interest among its rivals in recent weeks after SBC, the second-largest regional phone company in the nation, agreed to acquire AT&T for $15 billion.

~snip~

http://www.nytimes.com/2005/02/14/technology/14phone.html?hp&ex=1108443600&en=ee9339f30446c01c&ei=5094&partner=homepage

[bdot]

1. dang

Well that decreases the chances that I could find another job at MCI.
Plus increases the # of telecom people who will be laid off soon.

[mhr]

2. Ditto, Ex-Telecom Worker - Unemployed 59 Months - No Place To Turn

All of my experience, college degrees, etc. are now worthless.

[On the Road]

3. Double Dang -- My Employer Just Bought MCI

Now there will be a huge wave of layoffs. I am just short of 20 years -- this would be a horrible time to get the axe.

Plus, MCI has a unique corporate culture, to say the least. Very aggressive. Very out of step with the local telcos. I admire what they accomplished in the past, but I do not want Verizon to become another MCI.

[w4rma]

4. The baby Bells are merging back together again. (nt)

[Voltaire99]

5. Astonishing that the bankrupted shit heap known as Qwest...

...is still intact, let alone able to bid billions for other shattered companies.

Ah, capitalism. At least in the upper stratosphere of malfeasance, you're...miraculous.