Merger Mania Reaches Canada
Not alot of money involved.
So I'm assuming that either Fido is not that big a company and isn't worth all that much, or the Canadians don't place such an emphasis on the cellular industry.
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First, it's Canadian dollars, so it's actually even less than it sounds like - it's about $790 million USD.
You're right, that's not a whole lot, but the Canadian market is naturally much smaller - fewer customers to go around - and Fido is one of the smaller carriers within that market, with only 1.3 million subscribers. Plus half of those are pre-paid customers, which generally aren't the most desirable kind.
Also, Microcell just emerged from bankruptcy a year ago. 😲
But that's actually half the reason Telus wants to buy them. Microcell has large losses on the books that would carry over, meaning Telus could save many millions in taxes. 😉
You're right, that's not a whole lot, but the Canadian market is naturally much smaller - fewer customers to go around - and Fido is one of the smaller carriers within that market, with only 1.3 million subscribers. Plus half of those are pre-paid customers, which generally aren't the most desirable kind.
Also, Microcell just emerged from bankruptcy a year ago. 😲
But that's actually half the reason Telus wants to buy them. Microcell has large losses on the books that would carry over, meaning Telus could save many millions in taxes. 😉
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