There was a steady buzz of excitement throughout the PCIA’s
2013 Wireless Infrastructure Show earlier this week, but when Bloomberg
reported that AT&T is close to selling towers to Crown Castle the questions
and curiosity only increased.
“AT&T, the largest U.S. phone company, is near an
agreement to sell its wireless towers to Crown Castle International Corp,
people familiar with the matter said,” Bloomberg reported.
While there were no specific details given, AT&T has
been looking to sell some of their towers for a few months now. This news broke
back in September, but now AT&T may have found the perfect offer.
“People with knowledge of the matter said in September the
assets could fetch $5 billion.The sale would bolster AT&T’s balance sheet
as it undertakes a $14 billion network upgrade, plans a stock buyback that may
top $11 billion, and considers acquisitions in Europe,” according to
Bloomberg.
No one from AT&T or Crown Castle was willing to
comment on this news so it’s still uncertain whether this deal will be
finalized or not. AT&T has about 10,000 towers, which generate about $326
million in annual revenue as other companies pay to lease space on the
facilities, according to JPMorgan research analyst Phil Cusick. The towers may
contribute cash flow
of about $216 million a year, and a sale at 17-times that figure would fetch
about $3.7 billion, he said in a note in August. (Source: Bloomberg)
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