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Sprint purportedly giving up on T-Mobile acquisition and Sprint CEO Dan Hesse to leave company

S4GRU

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by Robert Herron

Sprint 4G Rollout Updates

Tuesday, August 5, 2014 - 5:30 PM MDT

 

The Wall Street Journal and Bloomberg are reporting this evening that Sprint will announce tomorrow morning that it will stop pursuing a purchase of T-Mobile USA.

 

Furthermore, according to these leaks to financial media, it is also anticipated that Sprint CEO Dan Hesse will leave Sprint and his replacement will be named. The combination of the two companies was already cast as dubious by many because of the perceived reduction in competition in the American wireless landscape. CNBC stated that the final straw was the FCC decision last week not to allow Sprint and T-Mobile to jointly bid for spectrum in the 600MHz auction. It was seen that this move by the FCC was indicative of the Feds lack of tolerance of a combined entity.

 

We will add to the rumors by wondering aloud if Nikesh Arora will be named the new Sprint CEO. Arora recently was announced to be leaving Google as Chief Business Officer for a new position at SoftBank. Could this have been a play to move him to Sprint all along? UPDATE: Later into the evening, more sources have outed Marcelo Claure as the heir apparent to Dan Hesse. Claure is best known as the majority owner of Brightstar and already serves on Sprint's Board.

 

Stay tuned as more information is obtained!

 

S4GRU Members are discussing this in our forums: http://s4gru.com/index.php?/topic/6013-sprint-reportedly-bowing-out-of-t-mobile-bid/?p=346787

 

EDIT: Added CNBC info at 5:55 PM MDT, Added Arora conjecture at 6:10 PM MDT. Added infor regarding Marcelo Claude at 8:15 PM PDT.

 

Sources: Wall Street Journal, Bloomberg, CNBC

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Whoa...this is a huge surprise.  Didn't they just reupp Dan Heese's contract as CEO?  If this is the case, why did they resign him to such a large contract if he is going to leave.

 

I guess Sprint realized that they are going to face huge opposition from the FCC if they planned to merge.  

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I am not surprised and I am glad this finally came out. HOwever, I am disappointed about Hesse.  He was good for Sprint. Farwell and enjoy retirement.

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Sorry to see Hesse go if this is true. He was a good CEO for the company. Led the company through a lot of changes for the better through some very lean years.

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Websites are claiming Marcelo Claure from brightstar will replace Hesse

 

It sure is looking that way.

 

Robert

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This may yet be a blessing in disguise for Sprint as freed up money could lead to buyout of smaller cellular companies to add to it's network expansion as well as  improvements. Turning a profit and ramp up for next years action. Sprint's sugar daddy, Masayoshi Son, at Softbank can make that happen.

 

On the other hand tmobile future doesn't look at all good. With the failed combined joint spectrum auction blockade by the FCC it will have no means to raise enough money needed and coupled with the fact DT is still pursuing to dump them off to the highest bidder and get out of the US market. Apparently Iliad is supposed to be bidding again along with Dish, Cox, and Charter's help. If this is true, you can say goodbye to Uncarrier as those 3 companies are looking for profit immediately. They;re going to want to raise prices all around to justify their purchase.

 

Let's see how the story unfolds. Turn the page....

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Not to sound like a fanboy (but, maybe in some ways I am) however, BEST wishes to Dan Hesse, He's the best thing to happen to Sprint in a very long time.  He kept Sprint alive in their darkest days. 

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Even though they have been gone for a few years now, this move makes me truly miss the black and white Dan commercials.  They were classy, which rhymes with the characteristic of recent T-Mobile commercials.  Take a guess.

 

AJ

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I think Son is going to let other companies try for TMobile. The three companies stated in an above comment , if approved for the buyout, will raise prices, not complete the edge to LTE upgrades. Leaving sprint to gain from their subscriber lose. T-Mobile will return to the red once again. Also I have a feeling that sprint is going to go after some regional carrier they have the roaming agreements with.

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I actually liked those commercials, but sprints network failed after that so dan couldn't be used again because it would remind everyone of the old slow network... but anything would be better than the last few campaigns!  Hopefully they address this, not that it makes a difference in network quality, but they are just failing in this department.  

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Does Sprint have to pay a break-up fee and if so how much is it?

 

Sprint never formally bid for Tmo. They only had talks with them. So there is no break up fee to be paid.

 

Robert

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So Marcelo Claure has his BMW in my shop right now having us install a radio... He already calls himself CEO. Thought it was funny.

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So Marcelo Claure has his BMW in my shop right now having us install a radio... He already calls himself CEO. Thought it was funny.

 

That's what he is, isn't he?

 

Robert

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I'm wondering why Hesse is leaving ?

 

Maybe he's leaving becuase he's taken the company thorugh the merger, nextel shutdown, and NV rebuild. Now it's time for new energy to take the company through the next phase and the rebuilding of the Sprint brand.

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