New Buyers Could Gin Up ISP M&A: CoBank
Wireless operators, particularly T-Mobile, showing increasing interest in fiber companies could help generate more broadband M&A activity, CoBank said Friday. Valuations for privately owned broadband providers were flat during the past 12 to 18 months and below levels of two…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
to three years ago. T-Mobile is using M&A for growth and to bolster its smartphone service by bundling it with home internet, CoBank noted. It said broadband operators were the subject of bidding wars five years ago due to low interest rates, easy access to good labor, and new fiber builds growing in underserved areas. Moreover, the COVID-19 pandemic pushed valuations higher given the work-from-home trend. However, subsequent inflation hurt broadband valuations. Now there is "a staring contest between some buyers and sellers" over price, slowing M&As. CoBank added that M&A activity should begin picking up again owing to lower interest rates and nationwide wireless operators' interest in fiber assets.