A Smallish Wrinkle in an otherwise Smooth AT&T Acquisition of Leap Wireless

In Leap’s most recent filing with the Securities and Exchange Commission, the company said that “in the event Leap is involved in a change-of-control transaction with another facilities-based wireless carrier,” Leap’s new owner or Sprint could terminate the carriers’ 2010 wholesale MVNO agreement.

However, Leap’s owner “would be required to pay to Sprint a specified percentage of the remaining aggregate minimum purchase commitment, with the percentage to be paid depending on the year in which the change of control agreement was entered into, being 20% for any such agreement entered into in 2013 and 10% for any such agreement entered into in 2014 or 2015.” Leap specifically noted that AT&T’s purchase of Leap would trigger that stipulation.

For more information about AT&T M&A, partnerships, and strategic product development, see:

http://www.mindcommerce.com/Publications/AT%26T_ServiceExpansionStrategy.php

About Mind Commerce

Analysis of telecom and ICT infrastructure, technologies, and applications.
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