Will Verizon Wireless acquire Sprint?
The Wall Street Journal Blog asks,
"Think of how much better long-suffering Sprint shareholders would have been expanding through another type of deal: say, a buyout offer from the likes of Vodafone Group."
Vodafone, is the part owner of Verizon Wireless, a JV. Technically I should have said Vodafone in the post title.
The answer however is, a resounding no. The law of conservation of good mobile customer states that there are no more new customers, growth can only be initiated at the expense of others or by acquisitions. Sprint would've looked attractive if it were the size of Alltel and acquiring it just to show subscriber growth would've been worth the deal.
At the current rate Sprint is losing subscribers and its current change of leadership, Verizon and at&t will step up efforts to acquire its subscribers not its liabilities. But will the Private Equities make a play to acquire Sprint? With $2.4 Billion in cash and $6.8 total current assets, it is a possibility. That sure will cause big hurdles for Wi-Max because the private equities are about cost cutting and generating cash flow, not about strategic growth in wireless industry.
What do you think?
[tags] sprint, verizon, vodafone, at&t, sprint acquisition[/tags]
"Think of how much better long-suffering Sprint shareholders would have been expanding through another type of deal: say, a buyout offer from the likes of Vodafone Group."
Vodafone, is the part owner of Verizon Wireless, a JV. Technically I should have said Vodafone in the post title.
The answer however is, a resounding no. The law of conservation of good mobile customer states that there are no more new customers, growth can only be initiated at the expense of others or by acquisitions. Sprint would've looked attractive if it were the size of Alltel and acquiring it just to show subscriber growth would've been worth the deal.
At the current rate Sprint is losing subscribers and its current change of leadership, Verizon and at&t will step up efforts to acquire its subscribers not its liabilities. But will the Private Equities make a play to acquire Sprint? With $2.4 Billion in cash and $6.8 total current assets, it is a possibility. That sure will cause big hurdles for Wi-Max because the private equities are about cost cutting and generating cash flow, not about strategic growth in wireless industry.
What do you think?
[tags] sprint, verizon, vodafone, at&t, sprint acquisition[/tags]
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