[Music] smt Nation we are back Nation we've got a breaking story out of the Wall Street Journal Verizon is in advanced talks to acquire Frontier Communications this one is wild before we get started with this please do like and share this video subscribe if you're new here and turn on the notification Bell to never miss an upload from the smt all right folks so we have ourselves a deal that appears to be in advanced stages what Verizon would be doing would be purchasing a company that they actually Once Sold I think it's been a long time it's been several years but this would be a reuniting of sorts now in the process over the course of the last several years Frontier has been building out a fiber Network and I think they have made themselves an attractive acquisition Target by Verizon and this also could potentially be a play uh I think maybe there has been some suppression of sorts in the merger and acquisition Market while interest rates have been pretty high now conditions may be softening and loosening and borrowing money for a company like Verizon would come at an easier cost than a lower interest rate so it may have been something that's been on the radar for a while and I think also the fact that Verizon has been trying to delever a little bit pay down some debt I think that's been a factor I also think AT&T was in play for Frontier as well and this probably throws a a wren into the woodwork so there's quite a bit and and we know that T-Mobile has been buying fiber as well right so all of that is part of this but I want to give you guys some understanding of the scale of this Frontier as an acquisition is not small it's not big either but it's major enough to where that puts Verizon in some new places where it's outside of their standard Verizon files footprint and obviously enhances the one fiber project and if this deal is valued around $7 billion to give you guys kind of scale on that the track phone deal was less than that right them acquiring track phone came in just a I think a hair above $6 billion and I think a a 50% cash 50% stock compensation type of transaction so I'm not sure how they would structure this deal I'm assuming it could be something like that uh but this is not an expensive purchase for Verizon they generate $7 billion in free cash flows in like two quarters right so it wouldn't be an issue um to make this deal happen and it feels like they were really gung-ho on kind of going in this direction and maybe it was to block AT&T we we're seeing that in the industry now we we get the sense of that you know I think that's a possibility ility I I I think there's some of that market acquisition merger and acquisition suppression I think that's been a factor but I do find it interesting that they sold this company and now they want it back you know and maybe it was the fiber building maybe they realized that they need to get out of their own standard e like footprint maybe they've got to expand you know maybe that's a factor I don't know I'm I'm I'm a little surprised by this I'm a little caught off guard but it is very interesting it's uh it's something we're going to watch very closely but this feels like it's Advanced talks um you know that I wish I was a fly on the wall and I could get in on those conversations you know to see how this deal went all you know all went down but it's it's been this has been something that is a bit of a shocker I don't think anybody was ready for this so we'll see if this closes out soon it should based on the language used in this drop from The Wall Street Journal story but uh we'll give you guys more updates when they become available stay tuned for more from the smt like share and subscribe and we'll see you all on the next one smt nation it is time for me to introduce to you Aura give you guys an incredible Suite of cyber security protections to keep everything that you do online safe keeping you safe from Identity thefts scams online threats including 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