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RedSpark

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Posts posted by RedSpark


  1. https://www.advfn.com/stock-market/NASDAQ/DISH/stock-news/81387856/softbank-offered-to-help-fund-dish-wireless-networ
     

    “SoftBank Group Corp. offered to help finance Dish Network Corp.'s construction of a new cellphone network intended to shore up competition if the merger of the nation's No. 3 and No. 4 wireless carriers closes, Dish's chairman said Wednesday”

    It’s full on parody now. Straight up clown world. It was a lie. All of it.

    • Like 1

  2. 1 hour ago, red_dog007 said:

    Of course Son can pay off Sprint's debt.  Just in Alibaba alone Softbank owns $100+ billion.  He will only do it if it is required of him.  He will let Sprint CAPEX go to $0 though before he does such a thing.  

    Son wanted to flip Sprint.  He read it poorly and is having a horrible time. Sprint isn't really hurting his books, but it is taking up way too much of his time and capital.  At this point, he would have been better off buying out 10yrs of Sprint's bonds and getting someone not Claure to run the company from the get go.  Then step back and give the CEO a little freedom.  

    With debt cleared, more into capex, and a lot more freedom to operate, just the stock valuation alone I think Softbank would be up with Sprint.  

    I agree with you 100%.

    Masa was arrogant about things with Sprint. He completely misread the politics for the Merger on the first attempt, got stuck with it and then didn’t fully appreciate the regulatory environment with respect to his monopole network plan, which then forced Sprint to revert to a traditional network build.

    A merger isn’t meant to bailout this kind of thing, especially when he has the money.

    • Like 2

  3. 11 minutes ago, dro1984 said:

    The merger has nothing to do with helping or hurting you there.    If they don't merge, I'm sure you will lose it anyway.   Sprint will be in a situation where they will not be offering fire-basement prices!  I think you, some of you, are routing against this for purely personal reasons.   

    I’m against the merger because Masa clearly has the resources to revive and sustain Sprint, as he stated in his own words that he could pay off/down Sprint’s debt.

    https://www.bloombergquint.com/onweb/sprint-can-survive-without-t-mobile-ex-ceo-claure-testifies

    From that article:

    ”While T-Mobile and Sprint have cited the debt as a major reason why Sprint can’t survive on its own, the states presented email evidence demonstrating that that Sprint’s controlling owner, SoftBank Group Corp., was prepared to pay off Sprint’s debt if necessary. “If we need to pay back most or all of bonds, I’m willing to pay back all of those,” Masayoshi Son, the Tokyo-based technology conglomerate’s founder and and CEO, said in a Dec. 11, 2017 email to Claure.“

    Masa’s inexplicable unwillingness to do so should not be absolved with a Merger that will have an anti-competitive effect on consumers.

    • Like 2

  4. 1 hour ago, dkyeager said:

    Softbank would not suddenly wave a magic wand and all debt would disappear.   Sprint would have to be absorbed or recapitialized in some fashion (ie devalue current shareholders), which would require a realistic plan that would have to pass muster.  Then 5G investments could very easily put Sprint back into the poor house.  It all goes back to economies of scale.

    It is more likely that Sprint will have greater difficulty getting capital without the merger, since their value in any other merger will decrease, if such a merger is even possible. 

    SoftBank can’t just payoff the debt?


  5. 1 hour ago, bigsnake49 said:

    He could have agreed with John Legere and told the judge that it could lead to bankruptcy. But he did not. Instead he and Coombes said that there is a plan B. Instead of bankruptcy, retrenchment. It totally makes economic sense not just for Sprint but also for T-Mobile. Let the big two and maybe the rural co-ops fight for the rural customers.

    Sprint can retrench if it wants to. A merger shouldn’t be granted to keep that from happening, especially given that Masa has always had the means to bail Sprint out on his own. If Masa wants to let Sprint retrench, I’m fine with that. I may have to take my business of 8 lines elsewhere, but so it goes.

    If Masa had adequately supported Sprint by offsetting or completely negating its debt, it could have without a doubt been competitive with Verizon/AT&T, even with the comparatively low revenue flow it has versus the big two. Look what it’s been able to accomplish on “fuel vapors”.


  6. 21 minutes ago, bigsnake49 said:

    Also from the same article:

    Under questioning by the states’ lawyer, Combes said there was a “Plan B” for Sprint in the event the merger with T-Mobile failed to go though. Under that plan, Sprint would focus on fewer markets than it currently does, though its network would still cover about three quarters of the U.S. population.

    “Sprint two years from now would be a very different from Sprint today, because we would cease to be a national competitor,” Claure said, adding the company would likely have to borrow money and raise prices.

    Read more at: https://www.bloombergquint.com/onweb/sprint-can-survive-without-t-mobile-ex-ceo-claure-testifies
    Copyright © BloombergQuint

    So be careful what you wish for. Maybe your market will be the one that they pull back from. Maybe they won't be in as many rural and small town markets. Or they have to stop having such liberal roaming policies. They will probably have to sell Boost and close the stores in the markets they abandon. Yeah New York and California will probably still be served. 

    This strikes me as deliberate FUD by Claure.

    None of this would be necessary if Masa properly funded and adequately capitalized Sprint from the outset.

    But even more so, we know now that that this merger is a total farce, and it should fail because it’s clearly not necessary based on the disclosed communications that Masa was willing to pay off its debt.

    Masa: Time to reach for that checkbook.


  7. 15 hours ago, JossMan said:

    This merger is dead IMO, Son penny pinched just to get what he ultimately wanted.  Sons statement on paying back on bonds is the nail in the coffin.  30% chance this merger is approved 

    It’s defies explanation why Masa let Sprint wither on the vine for so long. Masa effectively devalued his own investment in Sprint to the point where Sprint couldn’t even be the majority partner in the merger he wanted.

    Finally the truth comes out: He always had the money to do it. 

    For a while, it was claimed that SoftBank's covenants with Japanese banks prevented it from infusing more money into to Sprint: https://www.wsj.com/articles/doubts-grow-about-whether-softbank-can-save-sprint-1439346616

    This latest news on Masa’s apparent willingness to pay off Sprint’s debt in whole or in part blows up that narrative completely.


  8. 14 hours ago, dkyeager said:

    On a capital raised basis Sprint does not look bankrupt at all.  The number of site improvements doing since the merger was announced is astounding.  Most of the sites in my market have been touched, most Clear sites tribanded, new sites made, small cells multiplied, Massive MIMO installed in dozens of places with more permits added just a few weeks ago.  They have more macro sites in my market than T-Mobile, a ton of small cells where T-Mobile has almost none.  Yet this work does not show in root metrics.  RF engineers from other firms have all said Sprint is short of backhaul as their key problem.  They blame management, which I believe is the key reason Masa wants this merger.

    That explains a lot actually. I’ve wondered why I’d have excellent signal and not reach higher peak speeds. Pings would be ok. No evidence of congestion. It’s the limited backhaul. Of course, there are a number of areas in DC/MD/VA where the network performance reflects severely limited Capex beyond insufficient backhaul.


  9. 13 minutes ago, dkyeager said:

     

    February for a decision is what I am reading.  Then there could be appeals. Lawyers fees are small potatoes for both sides. Opportunity cost is the biggest factor for both sides.

    Let's go worst case.  Merger fails.  Not certain that would mean bankruptcy. You would need to look at who holds the bonds.  Possible if Masa does, but otherwise unlikely.

    Much more likely: Sprint sells or gives away business in worst markets, ie those markets without VoLTE.  Another option would be to divest from uncooperative states by dividing into two companies, then merge the other portion. Network sharing maybe, but could be ruled collusion.  Then sellout to Cable companies, Dish, etc.  Go with the most money, which might be piecemeal.

    Is Sprint really teetering that badly that this would happen that quickly?


  10. 32 minutes ago, dro1984 said:

    Before Masa opens up the "checkbook", pigs will grow wings and fly.    He has an attention span of 5 mins.   He just keeps investing in anything crazy and unusual...

    SoftBank’s Masa Son still trusts his gut and isn’t done splashing billions on ‘crazy’ entrepreneurs

    With this kind of flakiness, there is no hope for him to come back to Sprint to spend money.    He'll just let it wither to the point of bankruptcy.     So Redspark, wishing for a no merger is a waste of time.   You will end up getting nothing either way.    Unless your stance was to "punish" Masa .... It's pocket change to him.   He could care less!  You stock is what it is... only possibly worthless in bankruptcy.    You're only hope is the stock swap of a merger.   

    I don’t want to bail out Masa and Marcelo.

    Sprint’s bankruptcy fears are planted and overstated by PR teams to promote the merger. People have been saying that for years and it hasn’t happened yet.

    I believe it will take a shareholder uprising to set things back on course.


  11. 7 minutes ago, derrph said:

     


    Oh I believe it. Sprint digs their own holes. It gets hard to stand behind them then they do ish like this.


    Sent from my iPhone using Tapatalk

     

    I agree.

    Personally, I want this merger to fail because as a Sprint Shareholder I was lied to by Marcelo/Masa for years about Sprint. Aside from the loss of competition that I believe will happen with a Merger, since Marcelo/Masa want the merger, I don’t.

    I want to see Masa open that checkbook of his and be forced to put some real capex into Sprint. This is SoftBank we’re talking about here and they own nearly 85% of Sprint. That seems easily forgotten when Sprint is referred to as the #4 Carrier.


  12. 7 minutes ago, derrph said:

     


    Geeze...Sprint is always caught in some. Some like this is self inflicted. I just don’t see how he can really clean that up too much. That’s feeding into the hands of the AGs. I wonder now what other blunders Sprint has now. I wouldn’t be shocked if more come out. Sprint ALWAYS show their hand.


    Sent from my iPhone using Tapatalk

     

    The spin cycle is warming up.

    There’s more where that came from. I guarantee it.

    Put stuff like this in a phone call. Not a text/email.

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