MCI WorldCom, Sprint Merge
As reported here last week, MCI WorldCom Inc. and Sprint Corp. have concluded a deal to combine forces in the largest merger ever. The stock exchange is valued at $115 billion – $129 billion including debt. The new corporation will be called WorldCom.
To make the deal more attractive to its investors, MCI said it would put cost saving strategies in place. The company is dedicated to investing in new technology and has no plans to slow down its new product development.
The goal for the companies after one year of operation is an annual savings of $1.9 billion. At the end of three years, that number is expected to rise to $3 billion. Streamlined processes, efficient use of combined resources, and a decrease in capital expenditures will help the company realize these goals.
With the 4 million PCS subscribers and the 1.7 million paging and advanced messaging customers acquired from Sprint, there will be plenty of cross-selling opportunities for the new bundle of services WorldCom will offer. Get ready.