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Blog: John Myers

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Going Private

I don't usually like to comment on network equipment manufactures, but I thought that news that Avaya was going private was interesting. It appears that whether you are an equipment maker or a service provider that going private is the "rage".

However notice that most of these changes are happening outside of the top-3 in each category. In my opinion, "smaller" players are seeking the "haven" of private equity to make adjustments to their business models and/or structures to either make revolutionary changes and leap into that top-3 or be sold to a member of the top-3 at a premium for the private equity.... :)

Just like the venture capitalists of the late 1990's and early 2000's, the private equity firms are not on this type of buying spree as a favor to Alltel, Avaya, etc. They expect to be well compensated for their efforts.

Technorati Tags: Telecommunications, Telecom, Private Equity, Avaya, Alltel

  Posted by jmyers on June 8, 2007 8:00 AM |

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