Valuation of AirThread Connections

Submitted by :-CV Group 4

American Cable Corporation

Revenue - $30.9 bn (2007) Net Income - $2.6 bn (2007) 24.1 million video subscribers 13.2 million high speed internet subscribers $4.6 million high speed telephony subscribers

Financial and Consumer Data Strategy Increase customer base to fuel topline Enhance Network utilization $15 bn in acquisition between (1999-2005) Developed unique operational know-how

on merger integration Core Competence as an acquirer

Potential targets in same

or adjacent territories

Strategic fit check

Preliminary

Valuation

Steps to an acquisition

AirThread Connection

Revenue - $3.9 bn (2007)

Op.Income- $400 mn (2007

80 million consumers covered

Roaming agreements with other carriers to cover non-operating markets

Intends to purchase spectrum from FCC auctions

3-5 competitors in each market

20% high operating costs

No bundling of services

Average Revenue declined from 6.71¢ to 5.95¢

Cost of customer acquisition rose

from #372 to $487

Synergies from acquisition

ACCBundling of services for

business client acquisition

Calculations

Click here for calculations

Thank You