Verizon Buys Alltel For $28.1 Billion

Verizon finally made an honest woman out of Alltel today, confirming rumors that Verizon would acquire the smaller telecom - thereby creating the country's largest cellular provider. The deal will cost Verizon $28.1 billion, which includes the assumption of Alltel's $22.2 billion debt.

AT&T now finds itself only the second largest provider in the nation, just days before the presumed announcement of the second generation iPhone.

But Verizon and Alltel have been moving toward this point for years now, with rumors running steadily to that effect since 2005, and while Verizon partner Vodaphone has held up the deal until now, the two companies look more than compatible. Alltel and Verizon share the same CDMA technology and they provide service in different regions. That's a quick upgrade for Verizon's push to "reinvent itself as a wireless versus a wireline company," to quote industry analyst Craig Moffett.

Considering that Alltel isn't a publicly traded company, the $5.9 billion net gain (as the acquisition buys up Alltel's debt) must be a pretty sweet parting kiss.

Verizon Agrees to Buy Alltel for $28.1 Billion [NYT]