Mobilicity Confirms Talks With “Multiple Parties”

The worst kept secret in Canada was confirmed by Mobilicity yesterday. Apparently they are in talks with “multiple parties” to orchestrate a sale or takeover according to the CBC:

“We are working diligently to reach an acquisition agreement and thank our customers, dealers, employees and partners for their continued support as we see this process through to its completion,” president and chief operating officer Stewart Lyons said in a statement.

Lyons did not identify the possible bidders or disclose any other details on the discussions for Mobilicity, which has about 250,000 cellphone subscribers.

It’s a safe bet that one of those parties is Verizon who wants into the Canadian cell phone marketplace. But Wind Mobile could also be on that list:

But Wind Mobile CEO and chairman Anthony Lacavera, who owns a 35 per cent stake in the company he founded, has said he’s also interested in buying Mobilicity and the rest of Wind that he doesn’t already own.

Lacavera said he still believes that Wind and Mobilicity need to merge into one company and that combined they would have a good block of spectrum — radio waves over which cellphone networks operate — to build out a faster, next-generation network.

“I’m a competitive bidder in the process and I maintain my enthusiasm to buy the assets myself,” he said of Mobilicity.

My opinion? Canadians who want better prices and better customer service should hope that Verizon or another foreign carrier wins this horse race. That would create the competition that the cell phone market so desperately needs.

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