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  "documentTitle": "Lumen Technologies (LUMN)",
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  "authorName": "Kerrisdale Capital",
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  "presentationDate": "2024-08-15 00:00:00",
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  "notes": "Includes a valuation table calculating net proceeds and a pro forma impact table on EBITDA, interest, capex, FCF, and net debt.",
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      "text": "We view the level of potential value creation to be marginal. Any partial or JV-type divestments would be even less catalytic.",
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      "text": "Net leverage: 4.3x",
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      "text": "At 7.0x EBITDA... we estimate that an outright sale of the business would likely fetch net proceeds of ~$6bn. While a transaction along these lines would be slightly deleveraging and FCF accretive, we struggle to see why pro forma, the company would trade at a substantially better multiple.",
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      "text": "Lumen has long discussed an interest in exploring strategic options for its Mass Market consumer business to generate incremental cash. Management has stated a “one-and-done kind of deal” is less likely than a more piecemeal, market-by-market approach.",
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      "text": "Source: Kerrisdale analysis.",
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      "text": "Appendix II: Mass Markets Strategic Options",
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