Report: Sprint considers Nextel spin-off
Yesterday, the rumor mill claimed that T-Mobile USA parent company Deutsche Telekom was mulling a bid for Sprint Nextel. Now a report in the Wall Street Journal says Sprint is considering a plan to spin-off or sell its Nextel unit. The report, however, claims that no particular deal is forthcoming, the consideration comes during a strategic review process, which could mean the carrier is just reviewing its options. One of the options is selling the Nextel unit back to a group of investors organized by Nextel co-founder Morgan O'Brien, who now runs public safety company Cyren Call. Current valuations of Nextel put it at between $5 billion and $16 billion, far less than the $35 billion Sprint spent in 2005 to acquire it.
For more on the rumored spin-off:
- read this report from the WSJ (sub. req.)
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By Anonymous | Posted 2:11pm | May 6, 2008
I have seen this in other big business deals - everyone says there is no deal while the company being bought sell off the parts the buyer does not want. I think T-Mobile told Sprint "We will buy you out if you get rid of Nextel". At least we know it is not a smoke filled back room whare the deal is being made because you can't smoke in public buildings in the USA.
By Anonymous | Posted 6:52pm | May 6, 2008
T-Mobil buyinng Sprint is the same as Sprint buying Nexrel.Although they use the same CDMI technologies the frequencies are way off. The T-Mobil Sprint merger will never happen it's all rumor
By Anonymous | Posted 10:49pm | May 6, 2008
The best thing that could happen is for NEXTEL to go back to O'Brien and bring it back to the standard that it was before Sprint ran it into the ground like they do everything else they touch. Hopefully the 700 bandwidth for the public safety would also end up in his hands somewhere down the line. He would then have the infrastructure in place to build that out quicker than planned and be able to move the worthwhile customers who pay their bills on to that network instead of playing in the dirt with the other carriers who only care about profits and not their customers and their employees.
It doesn't matter that Sprint is CDMA and T-Mobile is GSM, neither company knows what to do with what they have anyway. The only hope they would have is 4G, and it probably wouldn't take them long to screw that up either.
By Anonymous | Posted 9:30pm | May 7, 2008
Well it's about time. Let's give the company to some one who knows how to make money with it.