Sprint CEO Claure says that the carrier would be stronger if merged with a cable company

Sprint CEO Claure says that the carrier would be stronger if merged with a cable company
Sprint CEO Marcelo Claure told Reuters on Thursday, that the nation's fourth largest carrier would be a much tougher challenger to Verizon, AT&T and T-Mobile if it were merged with a cable company. The recent acquisition of Cablevision doesn't leave any more strong acquisition candidates in the industry, so telecommunication companies have no choice but to look at merging with wireless carriers if they want to get larger.

Sprint is 82% owned by Japan's SoftBank Group, which out bid Dish Network to buy a 78% stake in Sprint back in July 2013. The value of the transaction was $21.6 billion. Additional stock purchases helped raise the stake to the current 82%.

While Claure told Reuters that everyone wants to get into the wireless industry, which is a positive for Sprint, the executive said that at this moment, the company is not in the middle of negotiations with any company. Sprint did run through plenty of cash while building out its 4G LTE network, and offering discounted pricing in an effort to snag unhappy Verizon and AT&T customers.


Claure, who founded phone distributor Brightstar, became Sprint CEO in August 2014, replacing long time CEO Dan Hesse. The latter was blamed when a potential Sprint-T-Mobile merger went awry. Hesse was awarded a $49 million pay package in 2013 despite Sprint's poor performance.

source: Reuters

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6 Comments

1. Fallen1

Posts: 288; Member since: Nov 14, 2014

Sprint getting desperate

4. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

How is this desperate...look at the current landscape. AT&T DirectTV, Verizon Fios. Sprint was linked to DirectTv in the past cross selling products until AT&T put an end to that. IF the cable companies woke up the big carriers would be in trouble. Every home a free wifi hot spot .....really it is a good move for Sprint. I have been saying it for years. Sprint needs to be in control if they got with comcast or we will be in trouble.

2. PapaSmurf

Posts: 10457; Member since: May 14, 2012

This is really sad. I don't how the hell it's possible to provide the worst service possible to customers and still be running.

3. JesseJames

Posts: 226; Member since: Feb 22, 2015

To be fare, it really depends on your location.

6. Quicksword_Phantom

Posts: 180; Member since: Jun 15, 2015

Fair*, and Sprint is trash no matter where you are.

5. DonkeySauce

Posts: 194; Member since: Dec 03, 2011

Sprint is just trying to outrun one bad decision after another. Its so frustrating. Last month, I left sprint after being an employee for almost 10 years. Its hard to describe how relieved I am to be out from under that bumbling mess of a company. There were a few teasers in the last few years to make you think they may turn around, but Nextel just left too much permanent damage.....

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