Please Don't Let this happen - Apple buying Sprint

[shawn_kc]

http://www.kansascity.com/2012/07/31/3734960/hows-this-for-a-fantasy-deal-apple.html#storylink=misearch

[4GHoward]

América Móvil does good prepaid business as TracFone Wireless in the United States. Maybe they should buy Sprint.

[themuffinman]

I really don't see anything like this happening anytime soon. Now from a current customer perspective this will really suck as prices will definitely increase without a doubt but at the same time network vision will probably be completed in record time. From an investor perspective this would be the equivalent to hitting the lottery. Seriously, if this were to happen the price of sprints stock will sky rocket like nothing else before it and current shareholders will be very happy, including myself.

[WiWavelength]

I love how wild speculators and Sprint haters point to Sprint's market cap of $13.5 billion. "If I just had $14 billion, then I could easily buy Sprint."

 

Back to reality. Does anyone here really think that Sprint could be acquired for less than $25 billion? Heck, AT&T was going to pay a ridiculous $39 billion for T-Mobile, and Sprint is more valuable than is T-Mobile.

 

AJ

[dedub]

I was in a few hundred shares of sprint until I got out during the recent peak, but one of the idea's I was hoping to happen would be apple or google buy sprint and use it to further their applicable phone ecosystem.

 

I'm still holding on some clearwire for the same concept, I figure that either sprint, or google/apple will eventually make moves to either buy clwr or their spectrum.

[bigsnake49]

I love how wild speculators and Sprint haters point to Sprint's market cap of $13.5 billion. "If I just had $14 billion, then I could easily buy Sprint."

 

Back to reality. Does anyone here really think that Sprint could be acquired for less than $25 billion? Heck, AT&T was going to pay a ridiculous $39 billion for T-Mobile, and Sprint is more valuable than is T-Mobile.

 

AJ

 

Sprint's net debt is about $15B, so a suitor has to come up with $14B of equity and $15B of debt, so at least $29B. I assume at least 30% premium on top of current price so 1.3*$14B+$15B=$33.2B. Of course they should probably count on another $5B to finish Network Vision.

[kct1975]

Please NO!

 

As an Android phone fan, that would sux. It would mean I would have to change carriers since I have absolutely NO desire to own an iPhone!

 

KCT - "No Matter Where You Go, There You Are!"

[twospirits]

i am no expert in this, but seriously, if Apple were to buy Sprint for whatever price (I think AJ mentioned no less than 29B), that would not be an investment for Apple. The iPhone line is only but a small portion of all the other phones and devices that Sprint offers. What would happen with those devices. If anything, the one that would and could possibly buy Sprint would be the one company that just recently mentioned that they always wanted to be in the hardware business. and that company is Google.

They already have ventured out by buying Motorola and now have cable service out in Kansas. By buying Sprint they will have the last remaining piece of the puzzle. Android OS, Google TV, cable service, a phone hardware division, and a cellular mobile network.

 

it may not be today or tomorrow, but I sense it will happen.

 

TS

[WiWavelength]

Sprint's net debt is about $15B, so a suitor has to come up with $14B of equity and $15B of debt, so at least $29B. I assume at least 30% premium on top of current price so 1.3*$14B+$15B=$33.2B. Of course they should probably count on another $5B to finish Network Vision.

 

Lest we not forget that Sprint's spectrum holdings alone are valued at $20.5 billion, roughly 50 percent higher than Sprint's market cap. PCS A-F, PCS G, and SMR combined, Sprint has a minimum of 30 MHz of spectrum truly nationwide. That cannot be undervalued.

 

AJ

[bigsnake49]

BTW AT&T has $62B worth of net debt. You don't hear much about that!

 

I think that Sprint just needs to execute on its Vision plan and reduce its roaming bill to a manageable amount like $250M instead of the $1B that it had couple of years ago. If that means that it limits the amount of roaming minutes allowed so be it. If it means that it kicks people off that are in marginal areas, so be it. If it means that it develops its network in said marginal areas, then so be it. They need to improve their margins to match the big two.

[JeffDTD]

Im not convinced Sprint's entire board would even sell for a total price of 33 billion . I think they would be happy to find a sugar daddy and allow a giant share/ cash infusion, but it doesnt seem that they envision a buyout, given NV etc etc etc.

 

And I despise the comment in that article "network overhaul isnt going to cut it" or whatever. Sick of the media spewing misinformation about a project thats like 1.5/38th the way complete

[ericdabbs]

I was in a few hundred shares of sprint until I got out during the recent peak, but one of the idea's I was hoping to happen would be apple or google buy sprint and use it to further their applicable phone ecosystem.

 

I'm still holding on some clearwire for the same concept, I figure that either sprint, or google/apple will eventually make moves to either buy clwr or their spectrum.

 

There is no way Google will touch Clearwire again. Google just sold their entire stake in Clearwire earlier this year in Feb 2012 and took a 450 million dollar loss on the sale. You can look up on Google..haha...to find reference to this fact. Also Apple would have no interest in Clearwire's 2.5 GHz spectrum since they are not in the wireless business and certainly the 2.5 GHz band alone is NOT what you would start a wireless business anyways.

 

I see only Sprint as a potential buyout candidate for Clearwire since they own about 50% of the company already. Had Sprint been in excellent financial condition right now, I am sure they would have bought out Clearwire by now to secure the 2.5 GHz spectrum assets at such a low price since the Clearwire stock was so heavily deflated 2 weeks ago.

[djmiro83]

BTW AT&T has $62B worth of net debt. You don't hear much about that!

 

I think that Sprint just needs to execute on its Vision plan and reduce its roaming bill to a manageable amount like $250M instead of the $1B that it had couple of years ago. If that means that it limits the amount of roaming minutes allowed so be it. If it means that it kicks people off that are in marginal areas, so be it. If it means that it develops its network in said marginal areas, then so be it. They need to improve their margins to match the big two.

 

Moving the SMR band from iDen to 1x Advanced will definitely cut down on roaming costs

[dedub]

more apple buying sprint speculation;

 

http://www.fool.com/investing/general/2013/03/12/apple-buying-sprint-fixes-everything.aspx

 

You know what would be really funny, if apple bought sprint, softbank, clearwire and dish.

[bigsnake49]

more apple buying sprint speculation;

 

http://www.fool.com/...everything.aspx

 

You know what would be really funny, if apple bought sprint, softbank, clearwire and dish.

 

It definitely would give them the content licenses they so desire. Short of acquiring content companies themselves, or producing original content, best way to get some licenses. Not to mention the means of delivering said content.

Edited March 13, 2013 by bigsnake49

[Fraydog]

The Motley Fool are a bunch of idiots.

 

Enough said there.

[WiWavelength]

The DoJ would not allow Apple to buy a wireless carrier. The vertical integration of device, content, and carrier would raise huge red flags.

 

AJ

[Fraydog]

http://www.beatriceco.com/bti/porticus/bell/bell_system_property.html

 

Here's a walk down memory lane, when the old Bell monopoly owned most of the phones connected to the system. In fact, there was a long time it was against their rules to connect a phone to the system without Bell Approval.

[bigsnake49]

The DoJ would not allow Apple to buy a wireless carrier. The vertical integration of device, content, and carrier would raise huge red flags.

 

AJ

 

I hate to disagree, but they will have absolutely no objection. Just as long as everybody else also could sell their handsets on the network. There will be 3 other networks as well. Plenty of choices.

They can be also be an MVNO.

[twospirits]

While i agree with both Fray and AJ, lets throw our views out the window and make believe that it would be okay for the DOJ to sign off on such a mega deal.

 

I still say it won't be Sprint/Clear/Softbank. Wouldn't it make more sense for Apple to go after a carrier like metroPCS/T-Mobile that offers both domestically and international?

 

TS

[WiWavelength]

I hate to disagree, but they will have absolutely no objection. Just as long as everybody else also could sell their handsets on the network.

 

Right, the DoJ would put many conditions on such vertical integration, would not allow Apple to buy a wireless carrier and turn it into iOS Mobile. And that should nip Apple in the bud because that is what Apple does. Apple operates its own closed ecosystem; outsiders need not apply.

 

So, unless Apple wants to use its disgustingly excessive cash reserves to buy a wireless carrier simply as an investment -- and I do not know why Apple would invest in an also ran like Sprint or T-Mobile -- Apple buying a wireless carrier is not going to happen.

 

AJ