IDT Buys out Carlos Gomez's Stake in UTA

Well the long and successful partnership of over 15 years between IDT and Carlos Gomez is now over. IDT has bought out Carlos Gomez's 49% share in the Jointly owned Union Telecard Alliance for $6.9 million in cash and other assets.

No one is exactly sure what prompted the transaction, but there is no doubt that this is a good deal for Mr. Gomez, whose UTA business has been declining rapidly over the last few years (just look at their quarterly earning statements over the last few years). Getting 6 million plus to get out of a business that has a rough future is something all of us prepaid distributors would love to be presented with!

IDT seems to be exited about the transaction with IDT CEO remarking "This deal will not only enhance IDT's operational capabilities, but is also in keeping with management's commitment to restructure and simplify our business..."

This is a toss up at this point with the potential for the company to go either way. Only time will tell who got the better deal.

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