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Wireless Federation » archive for 'Leap Wireless'

Leap up

  • May 12th, 2008
  • 3:14 pm

The US cellular operator Leap Wireless International has posted 19.1% growth in its first-quarter revenues, which stood at USD468.4 million, and has narrowed losses from USD24.2 million to USD18.1 million. The San Diego-based company added just over 230,000 net new customers in the three months to the end of March 2008, taking its total subscriber base to 3.1 million. The customer churn rate rose slightly from 3.4% to 3.6%, though average revenue per user (ARPU) increased from USD44.81 a month in Q1 2007 to USD44.98 in the most recent period.

   

 

 

Leap and MetroPCS merger could resurface next year (USA)

  • December 19th, 2007
  • 7:23 am

A report from the Wall Street Journal is suggesting that MetroPCS’s failed move to agree a merger with rival cellco Leap Wireless International could still be on the cards with Leap’s share price having plummeted since the offer was made. MetroPCS made its USD75.05 per share offer back in September but the Leap board rejected it, claiming the price was too low; Leap shares were valued at around USD72.50 at the time but have since fallen to less than half that on the back of a disappointing set of 3Q 2007 financial results. Under FCC rules, the two cellcos are now unable to discuss the merger until after the government’s 700MHz spectrum sale has completed next year, though the Wall Street Journal says that the chances of the deal being resurrected are high.

   

 

Leap Wireless gives MetroPCS the cold shoulder (USA)

  • November 2nd, 2007
  • 10:26 am

MetroPCS, the cheapo US cell phone operator, doesn’t want to buy Leap Wireless anymore - because it can’t get its takeover target to talk turkey. In September, MetroPCS made an unsolicited bid for its smaller rival, saying the combo would become a new national wireless carrier, covering 200 local US markets. Backtracking today, the cellco noted:

While there is widespread investor and analyst enthusiasm for a merger between the two companies, MetroPCS has not been able to engage Leap in meaningful negotiations regarding MetroPCS’ merger proposal.
But not enough enthusiasm from investors, it seems, or enough stomach from MetroPCS board members, to sweeten the deal with a seller’s premium, or to mount a hostile bid.

If the combination of MetroPCS and Leap is as compelling as Metro thinks, then it can only be a matter of time before two cellcos speaks as one. In the meantime MetroPCS is talking up its standalone prospects, pointing to a recent launch in US and, new market launches pencilled for the end of ‘08 or early ‘09.

   

Leap launches unlimited mobile internet service (USA)

  • September 18th, 2007
  • 1:19 pm

Mobile operator Leap Wireless International has launched its Cricket Wireless Internet Service in the Nashville, Albuquerque and Santa Fe markets. The service will enable customers in these markets to have unlimited mobile internet service through their laptops for a flat rate per month with no long-term commitments or credit checks. Cricket will be utilising the Kyocera Passport KPC650 modem, along with Smith Micro connection software, which are compatible with PC and Mac laptops with Windows 2000 or higher and Mac OS 10.4.10 or higher and a PCMCIA slot. The monthly service plan ranges from USD 35 to USD 40.

   

Leap rejects MetroPCS offer (USA)

  • September 17th, 2007
  • 12:48 pm

The board of Leap Wireless International has rejected a USD5.5 billion all-stock takeover offer from rival US cellco MetroPCS. Leap says the USD69.03 per share offer is ‘inadequate’ and that it is ‘not in the best interests of Leap and our shareholders’. A statement from Leap says the MetroPCS valuation fails to take into account Leap’s ‘robust’ growth prospects. It goes on to state that Leap has in the past attempted to open talks over a possible merger or strategic collaboration with MetroPCS, but its moves were rejected. MetroPCS maintains that its offer is fair and says it has received a favourable response from some Leap shareholders.

   

 

 

Leap rejects MetroPCS takeover offer (USA)

  • September 17th, 2007
  • 10:50 am

US mobile operator Leap Wireless has rejected a takeover offer from rival MetroPCS. Leap said the proposal was “not in the best interests of Leap and its shareholders” and undervalued the company and its growth prospects. It further suggested that MetroPCS was trying to pressure it into an alliance ahead of the upcoming spectrum auction in the US, despite Leap repeatedly approaching MetroPCS in the past over possible cooperation or a merger. MetroPCS made an unsolicited approach in early September, for an all-stock merger with Leap valuing the company at about USD 5.5 billion plus debt. MetroPCS said it would continue to consider the offer, as contacts with some of Leap’s shareholders had suggested they were interested in the offer.

   

Leap board reviewing MetroPCS offer

  • September 10th, 2007
  • 2:39 pm

The board of Leap Wireless International said on Friday that it is reviewing a USD5.5 billion unsolicited takeover offer from rival US cellular operator MetroPCS. The board will then make a recommendation to shareholders based on its review. If it goes ahead the merger of Leap and MetroPCS would create the sixth largest cellco in the US market, with more than six million subscribers nationwide.

   

 

 

Leap to review MetroPCS merger proposal

  • September 10th, 2007
  • 11:38 am

US mobile operator Leap Wireless International will review the unsolicited proposal received from MetroPCS Communications to acquire all of Leap. Leap’s board of directors will make a determination regarding the proposal following completion of its review. In connection with this matter, Leap is being advised by Goldman Sachs and Jeffrey Williams as financial advisors, and Wachtell, Lipton, Rosen and Katz, and Latham and Watkins as legal advisors. Also, Leap’s CFO, Amin Khalifa, has resigned from the company to pursue other interests. Leap CEO and president, Doug Hutcheson, will assume the additional duties of interim CFO, pending the naming of a successor to Khalifa. Earlier this month MetroPCS made an unsolicited offer of 2.75 shares of MetroPCS stock for each Leap share, valuing the company at around USD 5.5 billion, plus USD 2.0 billion in debt.

   

MetroPCS proposes merger with Leap Wireless (USA)

  • September 5th, 2007
  • 1:36 pm

US mobile operator MetroPCS has proposed an all-stock merger with rival Leap Wireless. The offer of 2.75 shares of MetroPCS stock for each Leap share values the company at around USD 5.5 billion, plus USD 2.0 billion in debt. The offer represents a 20 percent premium on Leap’s share price in the 20 days to 31 August, while MetroPCS expects the merger could realise some USD 2.5 billion in synergies. MetroPCS and Leap shareholders would own approximately 65.4 percent and 34.6 percent respectively of the new company. The combined company would have over 6 million subscribers and a presence in nearly all of the top 200 markets in the US. MetroPCS released a letter it has sent to Leap management on the proposals; no negotiations on the deal have started yet.

   

Leap profits decline on higher expenses(USA)

  • August 8th, 2007
  • 3:08 pm

US cellular operator Leap Wireless has posted second quarter revenues of USD393.2 million, up 47% from USD267.9 million a year ago, but net profits fell back slightly from USD7.5 million to USD3.2 million due to higher expenses. Leap ended June with 2.67 million subscribers, up from 1.84 million a year earlier.