Sprint not planning to buy Clearwire after all?
Folks who are working directly on the deal to close the acquisition between SoftBank and Sprint are saying that the priority is to ensure a timely merger between the two carriers, a process that is expected to take six to eight months. Sprint has already paid $900M to lease the spectrum needed for 2012 and 2013, and while the SoftBank merger does help Sprint’s cash position on the balance sheet, insiders are saying that Clearwire is too expensive.
Hedge fund principal Robert Chapman of Chapman Capital LLC thinks that Sprint would be better off buying 700MHz spectrum in lieu of any action to take on Clearwire. From an investment standpoint, he is “short” on Clearwire, who for their part have been burning through cash and generating little more than an increasing amount of debt and negative margins in just about every measurable category.
In the meantime, one of the components of the merger will entail SoftBank setting up a new subsidiary that will invest, just prior to the close of the merger, more than $3 billion in additional capital by way of convertible bond and valued at $5.25 per share. That cash will be used to pay down debt and address other short term needs. Sprint has a $4 billion dollar debt payment due in 2013.
Other capital investment options under consideration, besides taking on the rest of Clearwire (of which Sprint already owns 48%), will be addressed in “whatever ways we think will maximize shareholder value” according to Sprint CEO Dan Hesse. Those options include the aforementioned purchase of 700MHz spectrum via upcoming auctions, or perhaps make an attempt at cutting in on the T-Mobile merger with MetroPCS.
1. Galen20K (Posts: 523; Member since: 26 Dec 2008)
what a mess... I hope everybody eventually ends up on top on this tho. Here's hoping!
2. drum009 (Posts: 33; Member since: 23 Jan 2012)
Hmmm... I don't know how I feel about this.
Time will tell I guess.
3. jtech (Posts: 101; Member since: 14 Jul 2011)
Does the merger mean we will finally see Japanese handsets here in the States?
4. Contreramanjaro (Posts: 153; Member since: 04 Dec 2011)
No it doesn't because this isn't a merger, it's an investment. That being said the new relationship will open some hardware options up to both sides. I'd love to see some Japanese sets here but I just don't think they'd be a hit in the US market, the ones that aren't already here that is. Or the ones that aren't unique and just more options. How different really is an Aquos phone from an LG or Samsung? Is it enough to bring the phone to the states?
5. letgomyeggroll (Posts: 138; Member since: 13 Jun 2012)
Nope it will not help to bring Japanese version of device to U.S. That is all controlled by FCC and other Federal department.
I have Sprint services, and I don't understand why they continue to invest on a third party provider or do copy cat. Why Clearwire when they can use the money to build the 4G from the ground up. The Clearwire service sucks big time, very spotty. And Clear sale the data service like thet competing with Sprint.
Nextel on the other had was already in a hole that no one can get them out to recover. They made a deal that cost more the can even generate money for with 800 MHz and Sprint took on that. Than the Iphone, most subscribers that is on Sprint dont give a damn about Apple devices. If they did, they would switch else where. Even they claim that they had a lot of IPhone activation when they start selling them. But they also go a lot of IPhone returned too!!!.. That is why they so many refurbish IPhone to sale. So for them to get the IPhone, Apple had Sprint to cut some of the Customer Service deals from their subsscribers. So screw the existing customers that stay with Sprint so you can get a handful of IPhone fans...Really!!!!!!!
Be original!!!! That is why you have been the 3rd largest provider in the U.S. Don't get greedy!!!!!
7. goos2134 (Posts: 19; Member since: 11 Dec 2011)
Interesting considering i work and sell for sprint and sell 10-1 iphones and maybe have one come back if that a month. Thats all customers want. And when we do sell an adroid unless they are douche bag fandroids or apple haters or just cheap skates they usually come back for , you guessed it an iphone. Know what your talking about . The refurbs are phones that had issues or were maybe swapped due to color or in the rare case a return. #1 reason for a sprint customer leaving before the iphone, i want iphone. So try know what your talking about next time. Also apple didnt make us get rid of certain things , as ALL phones got more expensive it was not a good business move for some of the things we used to do . But im sure your the guy that goes in and is like i have 5 flip phones and i deserve this this this and this wheres my free phone blah blah blah . Hows that milano working for you cuz you had to have the free "smart phone".
8. the1uper (Posts: 2; Member since: 18 Oct 2012)
so goos2134 you work for sprint as what a salesman and here you are harking like you know everything??? why don't you do some fact checks before spitting out nonsense yourself???
11. goos2134 (Posts: 19; Member since: 11 Dec 2011)
considering i work there i do know thank you !
13. goos2134 (Posts: 19; Member since: 11 Dec 2011)
find me some facts your disputing and proof. i do this 40 hours a week . i know what leaves and comes in my store.
9. letgomyeggroll (Posts: 138; Member since: 13 Jun 2012)
Yep, you sound just like an Apple fan that dont know better and just a sales rep at Sprint thinks he knows everything. The problem, most rep don't know their stuff or even whats going on with the company. Not even most Rep in the customer service do.
Certain people just want a free phone because they just a want a basic smart phone that pretty much does what an IPhone can do. No, most refurbish are from unwanted phones returned. And they have been refurbished to look like know. And if you're telling because of a discolor are something like that...man that's a lot so called quality built IPhone that got refurbish..
Think about how many high andriod phones are refurbished vs Iphone??????? NOT MANY!!!!!!!!!!!!
12. goos2134 (Posts: 19; Member since: 11 Dec 2011)
cuz we use all the android refurbs for phone issues. i work at a service and repair location and we do 20-25 repairs or swaps of "basic" android phones a day. i own a windoes phone so no not an apple fan thank you. also keep in mine iphones from verizon can be refurbished from apple and shipped to sprint as well. but your just mad your cant upgrade every year anymore . so whatever. when your pay check says sprint you can act as if you know what we do and dont do.
14. letgomyeggroll (Posts: 138; Member since: 13 Jun 2012)
Now why would be made that I cant upgrade every year, because you can????? Aw NOPE!!! You work in service and repair location? BUT you don't service or repair IPhones because only Apple are aurthorize to do so!!!!!!!!! So this mean you do not know what is the turn around of an IPhone. You swap and repair 20-25 Android a day!! That is example that Sprint sold tons of Android phones.
As you brought up Verizon, Verizon just reported that they sold more Android phones than Iphone.
Just because your pay check says Sprint doesn't mean you know a whole lot. Anyone with a basic technicial back ground can get a job as a service tech since at Sprint, you have to be trained by the manufacture to service the phone is it release.
Don't use your title at a job to think that you know it all!!!!!!!!!!!!!
10. Naitto (Posts: 50; Member since: 15 Sep 2012)
Softbank is another iphone company. Do not expect anything else from them.