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0 pointsdd367y ago0 comments

Wait, Verizon doesn't have access to $4B? Verizon surely has significantly more net income than Tmobile. And therefore also has access to more leverage. $4B would not make that big of a difference.

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bduerst7y ago

Verizon makes about $4 B in quarterly net income, but they only have about $2 B cash on hand and have investors who expect a $2.4 B dividend each quarter.

So yeah, this is a hard purchase for them, especially since they also have $209 B in liabilities already.

dd36OP7y ago

No way. You don't miss out on 5G because you couldn't come up with $4B and your smaller competitor could. If it were $40B, sure.

adventured7y ago

That's definitely correct, $4 billion is meaningless. If it were $40b to corner 5G, Verizon and AT&T could come up with it and T-Mobile couldn't.

For significant business purposes, both Verizon and AT&T could borrow $40b easily. Whether for an acquisition or critical spectrum buy. They both have plenty of borrowing capacity despite being highly leveraged (it'll very likely end badly one day in the future).

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