Qwest: No network sale, now what?
Posted June 8, 2009on:
After a “strategic review” (i.e. we were shopping around), Qwest has decided to hold onto its long-haul network. Parsing through a press release closing the door on a sale makes for interesting reading.
Qwest says it received “unsolicited indications of interest from potential purchasers” for its long distance network, so it went out and set up a competitive bidding process. Apparently, buyers were interested, but they weren’t interested enough to pay for what the network was worth.
In conclusion, “the company and its Board of Directors have determined that the long distance network asset holds far more value to Qwest shareholders and is more strategically important to Qwest and its customers than is the alternative of pursuing a transaction.”
Well, duh, and how much money did you spend on the bidding process?
Hopefully, now that Qwest has figured out that its long-distance network is worth something, it can get around to working out a deal to get rid of some of its losses in the landline arena.