Leap Wireless Turns Down MetroPCS

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

Leap Wireless (LEAP) has turned away a takover offer from competitor MetroPCS (PCS).

According to Reuters "Leap said the bid was too low because it did not reflect the company’s strong growth prospects and said Leap was better positioned than MetroPCS within the industry."

The $69 per share bid did seem low. In June, LEAP traded at $99. The companies stock was then hammered back to Earth by its latest earnings. Leap’s revenue rose 47 percent to $393.2 million in the quarter, up from $267.9 million during the same quarter a year ago. Net income fell to $3.2 million, or 5 cents per share, from $7.5 million, or 12 cents per share, during the same quarter in 2006.

LEAP shareholder now have to decide whether the last quarter was a "one time" miss or whether management is unable to get costs and subcriber churn under control.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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