Re: [WISPA] Covad to acquire NextWeb for $23M
Yes, But I don't believe it. Its not likely they have an average ARPU of $400 a sub. But then again, maybe I'm wrong. If they really had $1,200,000 a month revenue, thats $14,000,000 a year, and they got screwed on the deal. Thats only a 2x annual revenue sell out, a way low evaluation under worth for a young industry like wireless. What makes it worse, is that only $4,000,000 of it was in cash. I'd argue that Covad stock is worth much less than wireless stock because of the CLEC market getting killed right now by legislation and FCC non-support. All I can say is, either Next-web was out of money, executives getting tired, or problems with their network. I'd argue they should be worth 4x annual, and at least half in cash, or they are lying about their revenue or revenue is not reoccurring revenue from subscriptions. Tom DeReggi RapidDSL Wireless, Inc IntAirNet- Fixed Wireless Broadband - Original Message - From: Blair Davis [EMAIL PROTECTED] To: WISPA General List wireless@wispa.org Sent: Wednesday, October 05, 2005 9:11 PM Subject: Re: [WISPA] Covad to acquire NextWeb for $23M $1,200,000 per month / 3000 subs = $400 per sub per month Must be nice to get those kinds of rates George wrote: Not sure who is subscribed to the isp-investor list. But this was a post today: NextWeb put out a press release a year ago with details regarding a 4-year track record of 84~100% annual growth. They announced sales of $8M annually ($670K/mo) with over 2,000 subs. Looking at those figures mentioned one can assume 3,000 subs and $1.2M/month with sustained growth. They are EBITDA positive. George G.Villarini wrote: 100 customers paying $49.95, wet-11 CPE's NOT!!! :-) Gino A. Villarini, Aeronet Wireless Broadband Corp. [EMAIL PROTECTED] www.aeronetpr.com 787.767.7466 -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of George Sent: Wednesday, October 05, 2005 1:04 PM To: WISPA General List Subject: Re: [WISPA] Covad to acquire NextWeb for $23M G.Villarini wrote: IIRC, Next web is a Axcellera shop . nice price tag for a unlicensed WISP. Gino A. Villarini, Anyone know how many subs and what the annual revenue of Next web is? George -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- No virus found in this incoming message. Checked by AVG Anti-Virus. Version: 7.0.344 / Virus Database: 267.11.9/116 - Release Date: 9/30/2005 -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
RE: [WISPA] Covad to acquire NextWeb for $23M
IIRC, Next web is a Axcellera shop nice price tag for a unlicensed WISP. Gino A. Villarini, Aeronet Wireless Broadband Corp. [EMAIL PROTECTED] www.aeronetpr.com 787.767.7466 From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Eric DaVersa Sent: Wednesday, October 05, 2005 12:22 PM To: wireless@wispa.org; isp-investor@isp-investor.com; isp-wireless@isp-wireless.com Subject: [WISPA] Covad to acquire NextWeb for $23M Some good industry news this morning adds some substance to WISP valuations. We do work with both of these companies so theres some personal reward here. Of course that places us under confidentiality and limited in commentary. grin -Eric Covad to acquire NextWeb for $23 mln Wed Oct 5, 2005 06:56 AM ET Oct 5 (Reuters) - Covad Communications Group (DVW.A: Quote, Profile, Research) , a provider of integrated voice and data communications, on Wednesday said it agreed to acquire Internet provider NextWeb Inc. for about $23 million in cash and stock. Covad also said it would assume $1.7 million in net debt under the deal. Our acquisition of NextWeb accelerates Covad's entry into the emerging wireless broadband market, Covad Chief Executive and President Charles Hoffman said in a statement. The deal, which includes $4 million in cash and $19 million in Covad shares, is expected to close by the end of the year. Covad said a portion of its shares to be issued would be restricted from sale in the open market for a period of time. Privately held NextWeb is California's largest fixed-wireless service provider for business. Shares in Covad closed at $1.05 on Tuesday on the American Stock Exchange. (Reporting by Renu Pariyadath in Bangalore) Eric DaVersa Vice-President, Business Development NetLogix OFFICE: 858.764.1998 CELL: 858.245.6702 FAX: 858.764.1982 [EMAIL PROTECTED] -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] Covad to acquire NextWeb for $23M
G.Villarini wrote: IIRC, Next web is a Axcellera shop … nice price tag for a unlicensed WISP. Gino A. Villarini, Anyone know how many subs and what the annual revenue of Next web is? George -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
RE: [WISPA] Covad to acquire NextWeb for $23M
100 customers paying $49.95, wet-11 CPE's NOT!!! :-) Gino A. Villarini, Aeronet Wireless Broadband Corp. [EMAIL PROTECTED] www.aeronetpr.com 787.767.7466 -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of George Sent: Wednesday, October 05, 2005 1:04 PM To: WISPA General List Subject: Re: [WISPA] Covad to acquire NextWeb for $23M G.Villarini wrote: IIRC, Next web is a Axcellera shop . nice price tag for a unlicensed WISP. Gino A. Villarini, Anyone know how many subs and what the annual revenue of Next web is? George -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] Covad to acquire NextWeb for $23M
100 customers paying $49.95, wet-11 CPE's NOT!!! :-) What is wrong with wet-11's? Aren't they about 100x more reliable than Can-o-pee :-D duck and run -Richard M. Gino A. Villarini, Aeronet Wireless Broadband Corp. [EMAIL PROTECTED] www.aeronetpr.com 787.767.7466 -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of George Sent: Wednesday, October 05, 2005 1:04 PM To: WISPA General List Subject: Re: [WISPA] Covad to acquire NextWeb for $23M G.Villarini wrote: IIRC, Next web is a Axcellera shop . nice price tag for a unlicensed WISP. Gino A. Villarini, Anyone know how many subs and what the annual revenue of Next web is? George -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ -- No virus found in this incoming message. Checked by AVG Anti-Virus. Version: 7.0.344 / Virus Database: 267.11.9/118 - Release Date: 10/3/2005 -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] Covad to acquire NextWeb for $23M
Not sure who is subscribed to the isp-investor list. But this was a post today: NextWeb put out a press release a year ago with details regarding a 4-year track record of 84~100% annual growth. They announced sales of $8M annually ($670K/mo) with over 2,000 subs. Looking at those figures mentioned one can assume 3,000 subs and $1.2M/month with sustained growth. They are EBITDA positive. George G.Villarini wrote: 100 customers paying $49.95, wet-11 CPE's NOT!!! :-) Gino A. Villarini, Aeronet Wireless Broadband Corp. [EMAIL PROTECTED] www.aeronetpr.com 787.767.7466 -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of George Sent: Wednesday, October 05, 2005 1:04 PM To: WISPA General List Subject: Re: [WISPA] Covad to acquire NextWeb for $23M G.Villarini wrote: IIRC, Next web is a Axcellera shop . nice price tag for a unlicensed WISP. Gino A. Villarini, Anyone know how many subs and what the annual revenue of Next web is? George -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
Re: [WISPA] Covad to acquire NextWeb for $23M
$1,200,000 per month / 3000 subs = $400 per sub per month Must be nice to get those kinds of rates George wrote: Not sure who is subscribed to the isp-investor list. But this was a post today: NextWeb put out a press release a year ago with details regarding a 4-year track record of 84~100% annual growth. They announced sales of $8M annually ($670K/mo) with over 2,000 subs. Looking at those figures mentioned one can assume 3,000 subs and $1.2M/month with sustained growth. They are EBITDA positive. George G.Villarini wrote: 100 customers paying $49.95, wet-11 CPE's NOT!!! :-) Gino A. Villarini, Aeronet Wireless Broadband Corp. [EMAIL PROTECTED] www.aeronetpr.com 787.767.7466 -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of George Sent: Wednesday, October 05, 2005 1:04 PM To: WISPA General List Subject: Re: [WISPA] Covad to acquire NextWeb for $23M G.Villarini wrote: IIRC, Next web is a Axcellera shop . nice price tag for a unlicensed WISP. Gino A. Villarini, Anyone know how many subs and what the annual revenue of Next web is? George -- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
