Sprint considering a bid for MetroPCS

Sprint considering a bid for MetroPCS
Now that the boards of Deutsche Telekom and MetroPCS have agreed to a merger between the nation's fourth and fifth largest carriers, number three wants to go number two all over their plans. Sprint, which last year was prepared to purchase MetroPCS for $8 billion until the mobile operator's board put the kibosh on CEO Dan Hesse's plan, is rumored to be considering a higher bid for the upstart pre-paid carrier.

Sprint CEO Dan Hesse may want another shot at MetroPCS

Sprint CEO Dan Hesse may want another shot at MetroPCS

A person familiar with the situation says that the Board of Deutsche Telekom is prepared to receive a higher bid from Sprint. The deal that both T-Mobile and MetroPCS agreed to allows the latter to back out of the deal after paying a $150 million break-up fee. T-Mobile can back out by paying a $250 million break-up fee.

If the MetroPCS deal with T-Mobile closes. the combined entity would have revenue of $24.8 billion and 42.5 million subscribers. Even though that would be fewer subscribers and revenue than Sprint, some analysts feel that a T-Mobile-MetroPCS combination could still put Sprint at such a disadvantage that it would make sense for the carrier to try to disrupt the deal with a bid of its own. A recent rally in Sprint's stock allows the carrier to use its shares as currency for a potential deal. Since the summer, Sprint's stock has risen nearly 50%.  Metro PCS currently has a stock market value of $4.61 billion while Sprint's market cap is $15.3 billion.

source: Bloomberg

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35 Comments

2. e.wvu unregistered

Sprint, you had your chance; however, you blew it.

3. Ravail

Posts: 182; Member since: Oct 14, 2011

Even though im not a Sprint customer, its good to see them finally turning a profit and increasing their net worth. With all their contracts they surely are going to need it.

36. lsutigers

Posts: 832; Member since: Mar 08, 2009

Sprint already has the biggest prepaid brands, buying Metro would only strengthen their prepaid group and instantly give them more customers and more LTE. It seems like a win win. I read somewhere else that all of Metro's customers would be absorbed by the Virgin and Boost brands and basically leave Sprint intact, which is good as mixing prepaid and postpaid would be a bad idea and Sprint has a huge corporate / enterprise and government customer base.

4. XPERIA-KNIGHT unregistered

sprint doesnt need to interfere with this seriously.......t mobile is tryna grow in service which will only be good for competition in the long run........sprint already has TWO prepaid carriers (boost and virgin).............What they need to focus on is getting those damn towers up for LTE service! smh

8. meowcenary

Posts: 187; Member since: Apr 13, 2012

Whomever gets metro would get metro's LTE. With T-mobile they would gain aa LTE infrastructure and build up and around with metros LTE network. With Sprint, they gain LTE service in cities that have yet to have LTE capabilities. With cities that they already have LTE in place it would be a boon. So it is a big gain.

10. letgomyeggroll

Posts: 139; Member since: Jun 13, 2012

It would cost TMobile more after the purchase Metro PCS for TMobile customer to use the LTE. The TMobile GSM phones are not compatible with the Metro PCS LTE. I would think TMobile want to have some CDMA prepaid customers separately

15. meowcenary

Posts: 187; Member since: Apr 13, 2012

GSM and CDMA are are different wireless standards. LTE on the other hand is built into either GSM or CDM infrastructure. As for cost, it is irrelevant, we pay the price of admission and take the beating. One minute we are with said company and as loyal as a dog. The next we bite the hand that feeds and jump to another company and do the same thing. Our relationsapny are one of love and hate. Again I shall use the netflix example if you want to talk about cost. Funny how people voted with their wallets with netflix and yet no one votes with their wallet with tellecommunications.

21. cptbeatstix

Posts: 101; Member since: Jul 19, 2012

Let me correct you on something. T-Mobile is purchasing Metro for the spectrum. Also, little known fact, LTE runs off a SIM Card. Do some research about the network before you put something down and look like an imbecile for not knowing what you are talking about.

32. p0rkguy

Posts: 685; Member since: Nov 23, 2010

Actually... LTE doesn't run(s) off a SIM card. The SIM card is really only there to confirm the identity.

12. XPERIA-KNIGHT unregistered

question is, how long could sprint have made this happen? and never did? now that t mobile is getting close to seeing some day light sprint gets afraid of competition or possibly losing their position as the nations 3rd largest, and all of sudden throw an offer at metro! instead of "buying" their way to better service and lte strength why cant they do what everyone else has been doing (verizon,at&t) and just plain old set up their towers? why wait until someone is about to do good and try and steal their opportunity? sounds like an insecurity problem to me

16. meowcenary

Posts: 187; Member since: Apr 13, 2012

You have to thank Sprint's governing board for that. They thought Hesse was crazy for the way he was running Sprint, especially with the iphone. Then Hesse wants to pull the trigger on metro and the board cock blocked him. So who has a sense of self smug satisfaction now?

18. richardyarrell2011

Posts: 510; Member since: Mar 16, 2011

Sprint had it's chance to purchase metropcs Sprint board of directors said NO. Nothing will change that now metropcs and Tmobile along with it's parent company has a deal already in place. Sprint needs to Buzz off and focus on what they need to do for there network. Tmobile is rocking and doing great things. Tmobile has been pimp slapping Sprint and Verizon silly. The future is very bright for Tmobile and it's Lte advance 10 network next year.

25. meowcenary

Posts: 187; Member since: Apr 13, 2012

As a T-mobile user, I am not seeing the rocking and doing the great things. Also if T-mobile was, "pimp slapping Sprint and Verizon silly", one would see results in gaining of users and profitability versus losses. Sprints stock has also doubled, that is good for Sprint. Verizon is still in the forefront against all the major comms provider. The future for Tmobile is uncertain, till they have their LTE infrastructure in place. All the major player have their LTE infrastructor in place, T-mobile is a unknown equation at this point. It makes me wonder just what T-mobile has in place regarding LTE. The merging of metro really speaks volumes, regarding the state of T-mobiles network. If this were Sprint merging with metro, I would say good call in bolstering your infrastructure. T-mobile's cases, it makes one wonder... T-mobile also need to stop hemorrhaging users and increase their profit margin. Till then T-mobile would be grasping at straws.

28. XPERIA-KNIGHT unregistered

stop being negative man.........this is a good move for them.......instead of going with "what you know" how about hoping for the best for them? you are a Tmobile customer right? well then you should be rooting for them if anything

31. meowcenary

Posts: 187; Member since: Apr 13, 2012

Yes I am a T-mobile user (Sporting a HTC Radar 4g) and hey I do wish them the best. However hope is a tall order right now. See T-mobile right now is like a girlfriend or boyfriend you are dating. You hope for change and you give them the benefit of the doubt. In this case, I am the one/others are waiting. Negative? Well should I sugar coat it? Unfortuantely positive and negative is like the Yin an Yang. It's good that T-mobile is going for metro, however that's one small step. Short-term they have LTE in place now (when the ink dries), long-term would be interesting.

33. XPERIA-KNIGHT unregistered

their success is only limited to your holding on of faith as well as your letting go of it........

35. HowMyDictate

Posts: 18; Member since: Jun 18, 2012

You bring Verizon into any and alll posts you make. Your like the girl left at the alter.... get over it.

6. alfadolla

Posts: 28; Member since: Mar 14, 2011

I couldn't have said it better myself but wait Metro has LTE service which might help sprint slow @$$

7. snowgator

Posts: 3614; Member since: Jan 19, 2011

Interesting.... While I like T-Mobile as a provider more, this just lines up better. In the time it takes to get LTE up and going the rest of the tech is not incompatible.

11. davidpoitier

Posts: 6; Member since: Feb 07, 2012

At some point Sprint & T-Mobile are going to have to hook up to compete with At&t and Verizon. #ItsGoingToHappen

19. Ruckus

Posts: 286; Member since: Oct 20, 2011

I don't think Sprint is as needy as T-Mobile. We have been selling way more new lines of Sprint than VZW or at&t as of lately (mostly disgruntled VZW customers that had unlimited).

20. MartyK

Posts: 1043; Member since: Apr 11, 2012

I am a Sprint customer, and I think Sprint needs to mind it's on business and allow this merger to go thru. Sprint needs to pick-up US Cellular LTE and then, ink a deal with T-Met to work together on Building and Sharing LTE Network; which will save each company tons of money and speed up the deployment of LTE for both company's customers.

22. cptbeatstix

Posts: 101; Member since: Jul 19, 2012

Only one problem, if you have 42.5 million customers (Tmo/metro) plus the 50 something million that sprint has, you have a very clogged LTE channel. It would be the equivalent to what happened with Verizon when a lot of people started switching to LTE devices and all of the sudden the network started crashing because of the influx. That is also just one company. If sprint and Tmo share LTE towers, it's going to be Verizon x300 and network failures.

23. theBankRobber

Posts: 682; Member since: Sep 22, 2011

After the bad deal with apple, I did t think they had any plans on spending big money like that. Nobody wants a Sprint iPhone and after its stupid money decisions I just don't think they can afford to make this kind of deal with out it effecting customers.

24. wumberpeb

Posts: 453; Member since: Mar 14, 2011

Sprint sells a TON of iPhones and seem to be doing much better lately, but I'm sure you know better than anyone who actually works there. We all should've known, sorry bout that...

26. Ruckus

Posts: 286; Member since: Oct 20, 2011

We sell tons of Sprint iPhones and why not? Its the only network with truly unlimited data that you can get the iPhone on (unless you buy it outright for tmo ). I use 6-8GB a month. Sprint is the best for my needs.

27. StalkinUrMom

Posts: 111; Member since: Apr 16, 2012

Sprint cock-blocking yet again d;

29. ChangMin2012

Posts: 87; Member since: Apr 14, 2012

Do it Dan, Do it! Get that contract soon!

* Some comments have been hidden, because they don't meet the discussions rules.

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