Valuation of Air Thread Connections

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Valuation of AirThread

The valuation of Air Thread is intended to present to it's potential acquirer, American Cable Communication (ACC) for consultation on decision of acquisition purpose. According to the case study, American Cable communications is a large and healthy cable operator which provides the services and products that related to internet, video and landline telephony. The demand of the ACC is high in America as for instance, there are around 48.5 million households installed the ACC cable , 24.1 million people who subscribe to ACC video, 13.2 million people who are currenly using ACC internet and 4.6 million landline telephone. According to James(2011), wireless is trending and is the future of communication and people relies heavily on wireless connections nowadays. The research team highlighted a study of wireless communications market and concluded that this market is highly competitive but highly profitable, there is around two-thirds of all Americans households using a wifi service (Industry overview, 2012). The wireless connectivity is trending in America but ACC does not provide the wireless network which is a huge opportunity loss to gain profit. Therefore, acquisition of ATC become a good opportunity to stay competitive in the market because ATC is one of the largest regional wireless companies across in America. ATC wireless's network coverage is strong and it covers around 80 million people and the market region of ATC is huge, it offered service fore more than two hundreds markets in United States. The potential to be acquire Air Thread Communication be equipped to competed with three to five major competitors in each market and it rely on the price, service area size, call quality and customer service to be more competitive. There are some drawbacks side of the market for ATC such as the disadvantage of the operating cost and incapacity to bundle wireless service. The acquisition of ATC will allow ATC and ACC to benefit with the...
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