Possible Sprint Buy-out by Deutsche Telekom

[wldthng842]

Originally Posted by cykococo

More importantly, no one has the kind of cash flow to buy out Sprint. Same speculation right now with Best Buy buying out Circuit City or someone else buying out CC. The only one with enough cash is direct competition that would have to shut down locations in order to not compete with itself.

DT is owned by the German Govt. They are like VZC, they have more money than they know what to do with from the monopoly on home access lines. They are the first buyout I actually read with interest of it being true. Even Google was something I called out from day one. This one has a shot.

Originally Posted by tech

sprint will never agree to a buy out!!!

Who said they have to. You can do a leveraged buyout and force the company to sell to you. You just have to buy a majority of their stock. For the right price anyone will sell. It just takes money.

Originally Posted by savior02

actually looks like they havent been keeping up i tryed to register and i keep getting this messsage:

We apologize, but due to increased demand, the WebCapTel service has temporarily reached capacity.
To provide you with the best service possible, we will contact you when capacity is available.

I got in the day it launched. It is real slick. They must have the skyfire itch.

To whoever said the Euro to Dollar exchange. This is best time for a European co to enter the US. Reports also show them looking to enter Canada. Look for them to at least do one, probably not both.

[wldthng842]

It is not looking likely. Usually the official announcement will follow shortly thereafter if something is really in the works. Although if Sprint rejected all offers DT could be working on the leveraged idea if they really want to buy them that badly.

[weakkneed]

Wildthing, if DT is owned by a foreign government, The U.S. government would have grounds to stop the purchase on national security issues. I would not like to see something as important as telecommunications owned and controlled by a foreign entity that might have reason to spy or manipulate( I know, I know, HP and other multinational companies already do this). This has nothing to do with Germany who is a good NATO ally, but with any foreign government

[eehrhard]

Originally Posted by weakkneed

Wildthing, if DT is owned by a foreign government, The U.S. government would have grounds to stop the purchase on national security issues. I would not like to see something as important as telecommunications owned and controlled by a foreign entity that might have reason to spy or manipulate( I know, I know, HP and other multinational companies already do this). This has nothing to do with Germany who is a good NATO ally, but with any foreign government

You realize that T-Mobile is owned by DT right? Why would the US government care?

[Justin9825]

So this is probably off topic. But I don't wanna make a thread for it. Will the moguls be able to use the Wi-Max? Might be a dumb question. Just wondering?

[wldthng842]

Originally Posted by weakkneed

Wildthing, if DT is owned by a foreign government, The U.S. government would have grounds to stop the purchase on national security issues. I would not like to see something as important as telecommunications owned and controlled by a foreign entity that might have reason to spy or manipulate( I know, I know, HP and other multinational companies already do this). This has nothing to do with Germany who is a good NATO ally, but with any foreign government

It is not owned per say by the gov't. More like how AT&T was the US monopoly and the gov't was all up in their business before split in 7. They are an isolated company but they have very tight regulatory control. If the US Gov't had an issue they would have blocked the sale of voicestream (i think) to them to make T-Mob.

Originally Posted by Justin9825

So this is probably off topic. But I don't wanna make a thread for it. Will the moguls be able to use the Wi-Max? Might be a dumb question. Just wondering?

Yes it off topic, no they cannot.

[weakkneed]

Wildthing, that makes more sense to me. I think timing, (think 2008 election and change of party), could change regulatory climate. Less Laize Faire, tighter control of business regulation, banking backlash, and other economic factors could upset the apple cart. Better chance of happening if it happens quickly.

[wldthng842]

if we don't have a more substantial report on it by the end of next week I would consider it dead. Usually these things don't get leaked until the very end.

[jdpoole5785]

Bottom line on this thread, it's all speculation until someone makes a move. I'm an Alltel employee and trust me not a corporate kool-aid drinker. Alltel is a debt free company and is moving in the right direction, but we were just bought out by private investment moguls Goldman-Sachs and other various private shareholders.

So when those out there say nobody has the money...someone does.

The reason why it is such a great time for a buyout is because of the 2009 bandwidth auctions from analog TV going bye bye. This is going to make a mad rush because it will allow those who aren't in major cities to enter the market, and those who were shutout of rural areas to enter causing more competition whereas currently the markets are localized to two major providers for any given metro area.

If Sprint's controlling shareholders had any sense at all they would take it private like Alltel, do some damage control, and try to get the hell off of PCS bandwidth.

The likelihood of Sprint merging with T-Mobil is 1/1000000 because it would cost the parent company billions to convert from PCS CDMA to either a dual band, or produce equipment that can bridge GSM and CDMA (ie Blackberry 8830)

More likely "partnerships" AT&T because they're loosing their TDMA network due to FCC mandating Analog turndown and will no longer be able to benefit from CDMA roaming. Verizon because their presense in rural markets is non existant and PCS has a range of appx 200 miles. And finally the lightweight contender Alltel because Sprint has a presence in Chicago, Dallas Ft Worth, Houston, LA...etc...pretty much everywhere we're not.

If Sprint doesn't sell, the WiMax deal better perform phenominally because there are companies with great financial portfolios chomping at the bit to put them in the history books.

[wldthng842]

Originally Posted by jdpoole5785

Bottom line on this thread, it's all speculation until someone makes a move. I'm an Alltel employee and trust me not a corporate kool-aid drinker. Alltel is a debt free company and is moving in the right direction, but we were just bought out by private investment moguls Goldman-Sachs and other various private shareholders.

So when those out there say nobody has the money...someone does.

The reason why it is such a great time for a buyout is because of the 2009 bandwidth auctions from analog TV going bye bye. This is going to make a mad rush because it will allow those who aren't in major cities to enter the market, and those who were shutout of rural areas to enter causing more competition whereas currently the markets are localized to two major providers for any given metro area.

If Sprint's controlling shareholders had any sense at all they would take it private like Alltel, do some damage control, and try to get the hell off of PCS bandwidth.

The likelihood of Sprint merging with T-Mobil is 1/1000000 because it would cost the parent company billions to convert from PCS CDMA to either a dual band, or produce equipment that can bridge GSM and CDMA (ie Blackberry 8830)

More likely "partnerships" AT&T because they're loosing their TDMA network due to FCC mandating Analog turndown and will no longer be able to benefit from CDMA roaming. Verizon because their presense in rural markets is non existant and PCS has a range of appx 200 miles. And finally the lightweight contender Alltel because Sprint has a presence in Chicago, Dallas Ft Worth, Houston, LA...etc...pretty much everywhere we're not.

If Sprint doesn't sell, the WiMax deal better perform phenominally because there are companies with great financial portfolios chomping at the bit to put them in the history books.

If a merger does go down with DT I would look for them to slow selling one network and focus on the other. They would eventually build it all into WiMax. This would allow T-Mob to skip 3G.

There really aren't any new spectrum auctions in the future. The one that just p***** is looking to be the last one for some time. I think the FCC is either holding the rest or finding other solutions for it.

Alltel and Sprint would make a nice partnership. So would Alltel and Verizon. That is why they were bought by the private equity firms. They bought it so they could grow it and sell it for a nice profit. I would look for them to be sold by the end of 2010.

Partnerships are great but are mostly in existence today via roaming agreements. The net sum of money that changes hands is small because a majority of the minutes cancel out. Alltel uses less but sprint and verizon roam almost the same amount as each other.