As of 11/30/2022:
TDS has a market cap of $1.20B
USM has a market cap of $1.81B
TDS owns 82% of USM. 82% of USM = $1.49B
Dish, Verizon, TMobile, AT&T, American Tower, Crown Castle, SBA Communications, and a Plethora of Private Equity Firms
US Cellular holds some very desirable assets:
***Subscribers:
- 3M Postpaid Subscribers at $50 ARPU with 1.4% Churn, 493K Prepaid Subscribers at $30 ARPU
Verizon/TracFone Acquisition ~$340 per Sub, $28 ARPU, 5% Churn
Private Equity/Consumer Cellular ~$500 per Sub, $30 ARPU, 2% Churn
- 3M Postpaid Subscribers at $850 per = $3.6B (Heavily Discounting beyond TracFone/Consumer Cellular Valuations)
493K Prepaid Subscribers at $200 per = $100M
***Cell Towers:
4329 Cell Towers. Many Tower Acquisitions in recent years, $400K per give or take
At $200K per Tower $866M (~50% Discount)
***Spectrum:
Spectrum Licenses, on the books at $4.7B
Discount 50% = $2.35B
***Los Angeles Partnership:
Los Angeles Partnership with Verizon ~$160M in Revenue for 2022
Heavily Discounting to $400M
***Debt:
Stacked up against US Cellular’s Net Debt of $3.1B
Postpaid Subscriber Base $3.6B
Prepaid Subscriber Base $100M
Towers $866M
Spectrum $2.35B
Los Angeles Partnership $400M
Total Assets $7.3B
Total Net Debt $3.1B
US Cellular Heavily Discounted Asset Value less Debt $4.3B, $50 per Share