Verizon Makes Offer on Wind Mobile, Sends Shares of Rogers, Telus, and Bell Tumbling

Major US wireless carrier is offering a generous $700 million for Canadian discount carrier Wind Mobile, according to sources cited in a Globe and Mail report. Reuters also supplied a report with a similar valuation.

Interestingly, Wind is not the only company Verizon has eyes for. It's also in talks with Mobilicity, according to the same set of reports.

Quoth The Globe and Mail:

Verizon’s initial offer for Wind is just one part of a broader strategy to potentially enter the Canadian market. Verizon has also held talks in recent days with stakeholders of Mobilicity, another small struggling startup carrier, and is also considering whether to participate in the federal government’s auction of wireless licences. In total, analysts have put the price tag for getting into Canada at between $1-billion and $2-billion.

As a result of the news, shares in all three of Canada's major carriers were sent tumbling. Rogers, Bell, and Telus each fell between 5% and 9% in trading today. And acording to analysts, it's unlikely these stocks would fully recover if Verizon successfully acquired one or more of Canada's startup carriers.

Telus Corp.
Vancouver, British Columbia, Canada

Technology is a key enabler for TELUS and our customers, providing advantage and differentiation in the marketplace. By managing the life cycle of current technologies and the timely introduction of new technologies we deliver superior service value to our customers and long-term growth oriented investment performance to our shareholders. For investors, TELUS is succeeding in managing... more

Wind Mobile
Toronto, Ontario, Canada

Simply put, we want to create the most unforgettably positive customer experience in Canada. How? By speaking with you, not at or over you. By making every site you visit, every store you set foot in and every call you have with us into a meaningful conversation to help build something better - together. We'll make it as easy as possible to be a customer. You'll have more control over your... more

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Techvibes NewsDesk

Techvibes NewsDesk

Techvibes is Canada's leading technology media property.Founded in 2002, Techvibes covers technology and business news that impacts Canadians. We combine breaking local news with international coverage to deliver a unique balance of insight and information. The Techvibes Newsdesk covers a broad beat and publishes general news stories. If you have a story you would like covered, email... more

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