1 of 1- paterson1
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BCE Buys US Internet Provider For $5 Billion/Stock Slides
From yahoo! finance..
- Shorty Wave
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Re: BCE Buys US Internet Provider For $5 Billion/Stock Slides
Although I am not a business pro, I think this wasn’t the best move for BCE. As mentioned in the article, BCE were going to use their money from the MLSE sale to pay down debt, but decided to buy Ziply Fiber in the US instead, bad call which could come back to bite them. I also get a bit miffed when Canadian companies invest out of country when their local business could use the investment.
- Chrisphen
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Re: BCE Buys US Internet Provider For $5 Billion/Stock Slides
Translation: Carpetbagger seeking to introduce American customers to Canadian-level internet prices. I'm sure it will go well.
- paterson1
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Re: BCE Buys US Internet Provider For $5 Billion/Stock Slides
I don't think it was the best move either. Bell says that there are areas of the US lagging behind with fibre technology and they are planning to increase fibre availability in the northwest US. They feel this will give Ziply a big advantage over the competition. Surprising that they didn't use the MLSE money from the sale to pay down some debt which they have a lot of.
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Thread Starter- Skywave
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Re: BCE Buys US Internet Provider For $5 Billion/Stock Slides
I predict this will be to BCE what Chrysler was to Mercedes - a disaster.
Perplexing is perhaps too charitable a word to describe this transaction. You have to ask what BCE's due diligence was:
1) 14.3 x EBITDA!!
2) A litany of 37 pages of complaints to the Better Business Bureau
3) A 2.5 rating on Trustpilot
4) A $900,000 fine in 2020 in Washington State over hidden fees and misleading internet speeds.
Ziply clearly has a cultural problem, and culture is something that Bell has difficulty in managing.
Well, at least we can how have a comparison of connectivity costs under common ownership but in different markets.
Finally, why would you want to buy a company that's over 3000 km away? Bell is not one for in absentia management.