All Sprint acquisition discussion (was "Japan's Softbank in talks for $12.8 bln Sprint stake")

[kckid]

Japan'a Softbank in talks to buy more than a 2/3rds stake in Sprint!

 

http://www.cnbc.com/id/49370595

http://www.cnbc.com/id/49370748 - update

[marioc21]

Well now! That's certainly news. Didn't consider a Japanese cell company getting involved. Is Softbank a CDMA provider in Japan? Are they using similar frequencies as Sprint for LTE?

[bigsnake49]

Not good. I don't like it unless they pump money into the company. They are getting Sprint too cheap.

[Feech]

Not good. I don't like it unless they pump money into the company. They are getting Sprint too cheap.

 

I think They would pump money into Sprint. Why not it's an investment? Maybe see some real innovation in the carriers here in the US if they can do something different that we haven't see here before.

[Syph3r]

It says they are in "Advanced Talks" but it sounds like its almost a done deal.

 

http://www.engadget.com/2012/10/11/softbank-acquire-sprint-nextel/

 

What does this mean for NV/LTE???

Edited October 11, 2012 by Syph3r

[Johnner1999]

What does this mean for NV/LTE???

 

http://www.engadget....-sprint-nextel/

 

It would mean that "Sprint" would have the money to complete it and have it work better... I assume.

[marioc21]

Not good. I don't like it unless they pump money into the company. They are getting Sprint too cheap.

 

They're buying 2/3 of the Company, so at 12.8 billion that values Sprint at about $19.2 Billion. Sprint's market cap at the close yesterday was 15.1 billion. That's a premium of over 25%. Not sure you could hope for more for Sprint right now.

[bigsnake49]

I guess it is an equity investment so, I hope Sprint uses it to finish their Network Vision and acquire some regionals and prepaid. I wonder if some US companies might not be awakened from their slumber and bid. My only problem would be if this was a leveraged buyout, using a company's own assets to borrow money against. In that case it only adds to the companies debt (see Alltel).

[JeffDTD]

Not good. I don't like it unless they pump money into the company. They are getting Sprint too cheap.

 

I agree, they're getting the bargain of a century if they get a majority stake in Sprint for 12 billion... IF they pump money into Sprint's assets and network and revolutionize it with the grocery bags full of money Sprint needs!

 

My dark little heart skipped a beat when I saw this headline this morning... but hey, Sprint's legacy is more guaranteed if this happens. Or, perhaps it creates a bidding war for Sprint?

[marioc21]

I agree, they're getting the bargain of a century if they get a majority stake in Sprint for 12 billion... IF they pump money into Sprint's assets and network and revolutionize it with the grocery bags full of money Sprint needs!

 

My dark little heart skipped a beat when I saw this headline this morning... but hey, Sprint's legacy is more guaranteed if this happens. Or, perhaps it creates a bidding war for Sprint?

 

Who would be bidding? Verizon and AT&T aren't going to make offers. The Government's made their position pretty clear on that. A european carrier maybe? Haven't heard any rumblings about that. But then again, this sort of comes out of the blue too.

[JeffDTD]

Does anyone remember what SK Telecom's offer to Sprint was back when Forsee left? I seem to remember they wanted control of the board , not sure if there was every an amount attached to it. Would be interesting to compare the two.

 

Although this comment is baseless, its possible a huge investment like this would cause NV expansion into areas where iden service is being shuttered with no plans to continue cdma/lte.... it could also fund a nice expansion into areas sprint doesn't for see having cash to be at ever. To be a fly on the wall and see what Softbank has in mind for sprint...

[Syph3r]

I'm not sure how I feel about this. On the one hand I think it will help increase NV deployment (probably with an influx for cash from Softbank) but on the other hand I don't know how I feel about Sprint being owned by a Japanese company. They will probably change Sprint's name to Softbank, to expand their brand.

[JeffDTD]

Who would be bidding? Verizon and AT&T aren't going to make offers. The Government's made their position pretty clear on that. A european carrier maybe? Haven't heard any rumblings about that. But then again, this sort of comes out of the blue too.

 

Dish... This newco zombie that is being created... Any private equity firm. Century link also apparently had an interest in sprint at some point?

 

I personally believe that Hesse has the best poker face in the industry ... Sprint drives a very hard bargain. I am certain they anticipate other offers for mergers/investments in the wake of this news. Although others may not offer as much cash as softbank, giving away less equity in the company could be equally as attractive.

[rjw]

I own shares in both Sprint and Clearwire and pre-market value is skyrocketing on both stocks. Clearwire will be part of the acquisition as well. Just announced on CNBC.. http://online.wsj.com/article/SB10000872396390444799904578050104132737498.html?mod=WSJ_hpp_LEFTTopStories

[bigsnake49]

I was thinking that Dish or DirectTV might want to bid for Sprint/Clearwire to provide for an OTT/VOD play.

Edited October 11, 2012 by bigsnake49

[marioc21]

Does anyone remember what SK Telecom's offer to Sprint was back when Forsee left? I seem to remember they wanted control of the board , not sure if there was every an amount attached to it. Would be interesting to compare the two.

 

Although this comment is baseless, its possible a huge investment like this would cause NV expansion into areas where iden service is being shuttered with no plans to continue cdma/lte.... it could also fund a nice expansion into areas sprint doesn't for see having cash to be at ever. To be a fly on the wall and see what Softbank has in mind for sprint...

 

Only article I found in reference to an investment was from WSJ. It mentions that a $5 billion investment offer made by SK which was rejected by Sprint. Then they tried to work out another type of alliance.

 

http://online.wsj.co...0294655639.html

 

Sprint Nextel, SK Telecom Weigh Alliance

 

July 16, 2008

 

 

South Korea's SK Telecom Co. and U.S. wireless carrier

Sprint Nextel

Corp.

S +1.79%

are in preliminary talks to form a strategic partnership to develop new handsets and services, people familiar with the matter said.

The companies have discussed the idea of SK Telecom making a minority investment in Sprint, but they aren't discussing an outright merger, the people said. Last fall, Sprint rejected a $5 billion investment offer by SK Telecom and Providence Equity Partners.

Any investment resulting from the current talks would likely be smaller, the people said. Sprint has a market capitalization of $26 billion, roughly double SK Telecom's market capitalization of $13.8 billion.

 

I just don't really understand the need for it from Softbank's side? They're a GSM carrier in the Japan. They use a different LTE frequency (2100Mhz). They acquired another japanese carrier earlier this month who provides LTE over 1800Mhz. Don't get it.

[Rawvega]

They (Softbank) appear to want Clearwire as well. Would line up nicely with their 2.5GHz TD-LTE network in Japan I suppose: http://finance.yahoo...-122013793.html

[Rawvega]

Only article I found in reference to an investment was from WSJ. It mentions that a $5 billion investment offer made by SK which was rejected by Sprint. Then they tried to work out another type of alliance.

 

http://online.wsj.co...0294655639.html

 

As I recall, SK Telecom wanted to install Tim Donahue (formerly of Nextel) in as CEO. Apparently that was a non-starter to Sprint's board for one reason or another.

[marioc21]

They (Softbank) appear to want Clearwire as well. Would line up nicely with their 2.5GHz TD-LTE network in Japan I suppose: http://finance.yahoo...-122013793.html

 

Didn't find the 2500Mhz info earlier. Good to know. Still, that would explain interest in Clearwire. Why Sprint?

[bigsnake49]

As I recall, SK Telecom wanted to install Tim Donahue (formerly of Nextel) in as CEO. Apparently that was a non-starter to Sprint's board for one reason or another.

 

It was a non-starter because he sold them a bill of goods, a pump and dump scheme, an overcrowded network. Now of course it is the board's responsibility to check those facts out, but...

[WiWavelength]

They will probably change Sprint's name to Softbank, to expand their brand.

 

I should hope not. Softbank Mobile has one of the most absurd names in wireless, the equivalent of something like Bank of America Wireless or US Bank Mobile.

 

AJ

[rjw]

It was also mentioned that this would allow them to get better pricing on handsets.

[jeffcarp]

Why would there need to be technical compatibility for this to make sense? If it is a financial investment does technical compatibility really matter? If they see a chance to make a diversified financial investment in another country, can acquire a financially struggling carrier at a good price but a carrier that seems to have a strong plan for technical improvement, then why not? I don't see technical compatibility between the two countries to be an issue at all. Unlike a domestic merger where the goal is consolidation, increased leverage with suppliers, and cost reductions on the overhead side, this deal would seem to be all about an ROI on investment.

 

Didn't find the 2500Mhz info earlier. Good to know. Still, that would explain interest in Clearwire. Why Sprint?

[bmoses]

ugh, i don't know if i should hold onto my shares or sell them now!

[bigsnake49]

Why would there need to be technical compatibility for this to make sense? If it is a financial investment does technical compatibility really matter? If they see a chance to make a diversified financial investment in another country, can acquire a financially struggling carrier at a good price but a carrier that seems to have a strong plan for technical improvement, then why not? I don't see technical compatibility between the two countries to be an issue at all. Unlike a domestic merger where the goal is consolidation, increased leverage with suppliers, and cost reductions on the overhead side, this deal would seem to be all about an ROI on investment.

 

Also remember that the yen is very strong vs the dollar so the deal in yen is much better than it could have been. Strong yen+ undervalued stock = recipe for success.