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