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Bloomberg ranks Sprint-Nextel merger among the least successful in recent history

Posted: , by Ray S.

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Bloomberg ranks Sprint-Nextel merger among the least successful in recent history
Sprint management has probably been feeling pretty good after reporting a net gain in subscribers for the first quarter in three years, but a recent Bloomberg report will undoubtedly put something of a damper on the company’s celebrations. The report, a look at the 100 largest mergers and acquisitions between 2005 and 2008, found Sprint’s merger with Nextel to be the third least successful.

At the time of the merger in 2005, Sprint paid a whopping $36 billion for Nextel. Now, just five years later, Sprint Nextel is valued at only $30 billion. In fairness, Big Yellow does seem to be on the up-turn. Customer Service ratings have improved dramatically, the subscriber base is growing again, and the company’s WiMAX network continues to expand.

So, this may be a bit of a downer for Sprint – but it’s not exactly new information for the company’s management or stockholders. Rather, it should serve as a reminder of the company’s past mistakes and a motivator toward the future. Hopefully, a future where Sprint will provide 1Gbps download speeds and continue to offer unlimited data plans.

source: Bloomberg via FierceWireless

25 Comments
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posted on 20 Oct 2010, 01:48

1. secret (unregistered)


Go sprint! 1st!

posted on 18 Aug 2010, 10:38

2. miggy man (unregistered)


if you have to announce your 1st your gay

posted on 18 Aug 2010, 10:46

3. narley21 (unregistered)


if you call someone else gay... 9/10 times YOU are.

posted on 18 Aug 2010, 13:41

6. phone333 (Posts: 331; Member since: 04 Feb 2009)


lol

posted on 18 Aug 2010, 14:14

7. messiah (Posts: 433; Member since: 19 Feb 2010)


if you use a fraction to express someone's gayness, you are gay.

posted on 18 Aug 2010, 11:38

4. AZNphoneGeek (Posts: 200; Member since: 15 May 2009)


i REALLY don't see too much value to this article. hey i dunno if you guys know this or not but a ton of people got their asses handed to them in 2005 during Hurricane Katrina. what do you mean that news is HALF A DECADE OLD?!?!

posted on 18 Aug 2010, 20:04

9. PhoneUser (Posts: 77; Member since: 11 Dec 2008)


I agree with you, sad to say but we already know this was a fail merge...WTF are you bring it up again? I think Phonearena is just trying to put Sprint down cause they have been doing great this year and are going to rise to the top. Hater much??

posted on 18 Aug 2010, 22:10

10. cj (unregistered)


whoa slow down. sprint is still in 3rd place (where they will stay) and has a LONG way to go to get back to profitability. just cause they didn't have their usual industry leading churn rate doesn't mean they're doing "great".

posted on 18 Aug 2010, 22:49

11. PhoneUser (Posts: 77; Member since: 11 Dec 2008)


Like i said... H-A-T-E-R..... compared to back 3-4years ago right now yes they are doing great. Just cause you have some grudge or something with them doesn't make it right for you to say"(where they will stay)" You may never know what the future brings for Sprint they might go big they might fall to 4th place...no one knows for sure. Does Sprint have a long way from being number 1...HELL YES...lol. No one can beat Sprint price plans at the moment and with Wimax coming to more cities they will be the best choice in wireless provider but it does boils down to what you want to spend and what you want to represent. Every registered user on Phonearena represents a carrier in one way. I represent ALL the carriers when they do a good job and when they fail, no one is perfect. Keep your negativity to yourself and post a productive responds instead of kicking someone when they are down. Have a great day :)

posted on 19 Aug 2010, 01:31

12. cj (unregistered)


lol @ h-a-t-e-r. youre taking this a bit too personally. ive been with sprint since 2000 so i have no reason to hate (love my sero plan) you came in here offended and accusing phonearena of "hating" on your beloved wireless carrier and calling people haters if they dont think sprint is going to go from 3rd out of 4th to 1st because they had 1 quarter where they didnt lose customers even though they still lost money ($760 million). nice job of backpeddling saying that you represent ALL carriers when you said sprint is rising to the top despite losing money and having half the user base of the second wireless provider. im not a hater. im just realistic as opposed to being a fanboy like you. ps. your initial post was negative accusing of phonearena of being haters just for reporting a study done by bloomberg. re-read your initial post to see comments from a bitter hater :)

posted on 19 Aug 2010, 01:37

13. cj (unregistered)


"No one can beat Sprint price plans at the moment" theyve always been the cheapest with unsuccessful results. f&f and sero were by far cheaper than anything sprint has today. pricing is the reason why customers such as myself stay with sprint but it is not the reason why customers would come to sprint at this point. plus sprint is starting to raise their rates such as with the evo. if verizon and att has showed us anything its phone selection that brings in customers. ps. hopefully the 10/1 rumors surrounding sero are true so i can get me an evo.

posted on 19 Aug 2010, 11:39

16. PhoneUser (Posts: 77; Member since: 11 Dec 2008)


"IF" you have Spring then why wouldnt you want them to do better? Why put them down? My first post was not hating on any wireless carrier which is what i meant, i guess i will have to be specific next time :). I not bitter at anything i just get exhausted hearing all this bad this bout one company, its like the whole Iphone antenna problem. Yes we know it SUCKS that the phone does/did that but come on do we really need to hear bout it everyday when it came out? Iphone Haters couldn't shut up with that and it gets annoying rereading it over and over again. Don't you think its funny how phonearena post articles on how much Sprint loses but it rare when they post how much they gained? They are number 3 for a reason but every quarter i see how much Sprint lost millions again and again but never really see how much they made in order for them to stay at the number 3 spot. I agree with you on the phone selection and how thats what people look at. IT SUCKS that Sprint is the only carrier that doesnt have a BOGO or FREE smartphone like the others. LOL i love that word fanboy, its cute. It just makes me think that instead of you having an actual conversation with someone you'd rather "insult" them.

posted on 19 Aug 2010, 11:41

17. PhoneUser (Posts: 77; Member since: 11 Dec 2008)


LOL i meant Sprint Not Spring LOL

posted on 18 Aug 2010, 12:07

5. remixfa (Posts: 13902; Member since: 19 Dec 2008)


what do you expect.. this comes from bloomburg. the man that owns that, mayor bloomburg of NYC, wants a mosque at ground zero thats backed by hammas. id say this was distraction material.. and a pretty sad attempt at that.

posted on 18 Aug 2010, 19:30

8. SMB (Posts: 30; Member since: 02 Aug 2010)


Looks like someone watches Faux News on a daily basis. You should get your nose outta Sean Hannity's and Bill O'Reilly's assholes, and actually research things before you go and make an outrageous post like this.

posted on 19 Aug 2010, 02:58

14. DonkeyPunched (Posts: 321; Member since: 10 Jan 2010)


LOL

posted on 19 Aug 2010, 09:38

15. remixfa (Posts: 13902; Member since: 19 Dec 2008)


maybe u should stop smoking pot at the huffington post, and actually have a clue before u flame someone. I find that the bulk of people that flame fox news have no idea what they are talking about. Maybe you should go back to kindergarden and learn how to connect the dots... or hell, get better insults.

posted on 19 Aug 2010, 17:36

20. WKlingbeil (Posts: 215; Member since: 26 Dec 2008)


Well SMB, I'm curious as to what information remixfa put in that was false? Does Michael Bloomberg not own Bloomberg magazine? Is he not the current mayor of NYC? Or does he not support the mosque being built on ground zero? Ummm, it seems to me like you're a flaming idiot because you've made statements that have no validity and are based solely on your political biases. It's spoon fed idiots like you that have brought this country to its knees (that's both right and left-wingers, because if you're an extremist bashing one side without facts, you're an idiot). Maybe you should get your nose out of Wolf Blitzer's asshole and actually do research before you make a statement. The only statement that remix made that was even debatable is the "distraction material" one. You can't say he didn't do research because the only person that knows why this story made Bloomberg magazine is Mr. Bloomberg and the editors. Do I believe that's why it was printed? No, but what kind of idiot makes such extreme statements on an observation? I can't stand people like you, and I really wish more of America didn't have the same "I'll believe whatever news stations feed me as truth and I'll skip the research and accuse others of not researching" mentality as you. You should be ashamed of yourself and really rethink (or think the first time) every post you put here.

posted on 19 Aug 2010, 22:38

22. Cocoa Monster (unregistered)


^ The guy above this post here is a faggot that works for Sprint, talks shit, and does not practice what he preaches.

posted on 20 Aug 2010, 11:59

23. SMB (Posts: 30; Member since: 02 Aug 2010)


Nice post, Right-wing a hole. Its not even a "ground zero mosque", its a "2 blocks away cultural center". Moron.

posted on 19 Aug 2010, 17:21

18. Cocoa Monster (unregistered)


If Sprint would invest half as much money in it's network versus the bullsh*t advertising and potbelly drunk NASCAR garbage, their phones might actually work outside of a major metropolitan area. Sprint...epic fail.

posted on 19 Aug 2010, 17:28

19. WKlingbeil (Posts: 215; Member since: 26 Dec 2008)


?? Where does Sprint not work that another carrier does? Don't say AT&T, because they lead all networks in dropped calls. VZW has service out in the boondocks, but does that even matter? T-Mobile has a footprint that's 1/4 the size of the rest of them, so where's your point? Maybe you should invest this time spent on the internet researching instead of making moronic statements like this. Seems to me like you should read a bit more instead of using trendy words like "epic," unless you're 13. If you are 13, then your opinions are not to be valued anyway.

posted on 19 Aug 2010, 22:34

21. Cocoa Monster (unregistered)


Not everyone lives in San Fran, you Metro, more people than not live outside of Sprint's coverage area. "VZW has service out in the boondocks, but does that even matter? T-Mobile has a footprint that's 1/4 the size of the rest of them, so where's your point?" Yes it does matter, faggot, you are not the only cellular subscriber in the United States. Go do your own research, look at a Sprint map. You mad because I used a word normally reserved for homos like yourself? Go wipe your tears on your boyfriend's dildo.

posted on 20 Aug 2010, 19:40

24. dirtyjharry (unregistered)


Everyone knows sprint blows chunks!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

posted on 22 Aug 2010, 05:34

25. Landmarkcm (Posts: 375; Member since: 11 Aug 2009)


Wow gotta love your maturity level where does all the childish name calling and sexuality bullshit fall into this. So lame shows how people like you are insecure.

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