Seeking Alpha

WSJ: Sprint ending pursuit of T-Mobile

  • The WSJ reports Sprint (NYSE:S) is abandoning its bid to acquire T-Mobile USA (NYSE:TMUS) due to excessive regulatory hurdles.
  • There were already many doubts about the ability of a Sprint/T-Mobile deal to pass muster with regulators.
  • If Sprint is out of the picture, the coast is clear for Iliad (OTC:ILIAF) to pursue T-Mobile, provided financing isn't an issue. There were multiple reports earlier today indicating T-Mobile is rejecting Iliad's initial $33/share offer for a 56.6% stake.
  • TMUS -5.6% AH
  • Related tickers: OTCQX:DTEGY, OTCPK:SFTBF
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Comments (14)
  • milehr
    , contributor
    Comments (529) | Send Message
     
    Sprint will do fine, regardless.
    5 Aug 2014, 07:03 PM Reply Like
  • Dennis Tikkanen
    , contributor
    Comments (109) | Send Message
     
    Sprint is still losing subscribers, while TMUS is gaining them.
    5 Aug 2014, 07:08 PM Reply Like
  • DougRk
    , contributor
    Comments (1621) | Send Message
     
    Sprint is in trouble. Their network is a mess, sub loss continues, satisfaction is low, and their spectrum holdings are stranded.
    5 Aug 2014, 07:17 PM Reply Like
  • cautionsvestor
    , contributor
    Comments (27) | Send Message
     
    Oh Snap!
    5 Aug 2014, 07:03 PM Reply Like
  • DougRk
    , contributor
    Comments (1621) | Send Message
     
    Hot dog! To the doubters of Iliad's bid, what say you now? Many of us were warning that the regulatory hurdles were steep.

     

    Niel and Legere would make a great combo!
    5 Aug 2014, 07:13 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1214) | Send Message
     
    Good. This merger would have been terrible for consumers.
    5 Aug 2014, 07:16 PM Reply Like
  • wpdsr001
    , contributor
    Comments (60) | Send Message
     
    Call me a fortune teller, call me what you want but letme give my two cents worth.

     

    I could care less about the String / T-Mobile merger. The "Free Market" would have taken care of that.

     

    What does bother me is that the Federal Regulators are now determining what is good and what is bad in competition. (Just like they own Stocks)

     

    May I remind everybody about the Saving & Loan Crisis, The Housing Crisis, etc..

     

    Could weevery have a Telecommunication Crisis.

     

    You be the judge. I don't trade in them. To "risky".
    5 Aug 2014, 08:18 PM Reply Like
  • SimonSaysShort
    , contributor
    Comments (113) | Send Message
     
    "I could care less about the String / T-Mobile merger."
    So you care a lot? OK?

     

    "the Federal Regulators are now determining what is good and what is bad in competition"
    No, just no. They are determining that more competition is good. They have been doing this for many decades.

     

    "May I remind everybody about the Saving & Loan Crisis, The Housing Crisis, etc.."
    Sure, enlighten us. They are totally unrelated to federal antitrust laws and have nothing to do with the telecom industry, but they sound scary so why not.

     

    "Could weevery have a Telecommunication Crisis."
    I don't even...
    6 Aug 2014, 09:24 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4633) | Send Message
     
    Sprint is about M Son's other holdings especially Alibaba.

     

    Glad to see Hesse go.
    5 Aug 2014, 08:35 PM Reply Like
  • vincent mcbride
    , contributor
    Comments (15) | Send Message
     
    Hesse, will do just fine. Now lets get to work rebuilding this company. First thing sprint needs to gut the the board and it's network and start all over with a clean white board. Bid in the auction for 20 MHz of 600 MHz spectrum for top 100 markets. Build the next generation cloud based core foundation for a 5G LTE Advance network. Yes we are talking about Gigabit mobile speeds.
    5 Aug 2014, 09:32 PM Reply Like
  • DougRk
    , contributor
    Comments (1621) | Send Message
     
    S doesn't have the money to do that. Spectrum rich, cash poor.
    5 Aug 2014, 11:12 PM Reply Like
  • NycIdea
    , contributor
    Comments (7) | Send Message
     
    As a sprint customer and owning a few thousand shares of Sprint / Blackberry i think it is a great move all around and i do hope Sprint does pickup on the idea i proposed and they denied (Read idea below) .... I Am grateful for bailing out and selling off all of my sprint shares after realizing that something is not right when shares are not rising and instead plummeting even after a good earnings report last month.

     

    This so called terrible news to some today just forced me to buy shares in S once again, i view it as company which can grow since cell phone service is not going no where going into the future and if you look at the big two US cellular companies, Sprint's total company market capitalization is roughly 1/6 the value of where it can potentially be compared to Verizon and At&t. A company which can multiply it's current stock price by a potentially a six fold is thinking high, but i'll be happy if my shares just triple in value for a company which i invested in because of Aggressive core leadership, Spectrum assets worth a majority of the market capitalization, A name synonymous with Cell Phone Carriers, Backing of various Softbank companies - http://bit.ly/XEpNkl,). I really hope Sprint learns going into the future and absolutely tries listening to there investors proposed ideas.

     

    PROPOSED IDEA-------

     

    “ Where Are They Now, There In The Sprint Framily”
    As a Sprint investor who had nearly $20,000 plus my credit line invested into Sprint and a valued customer for over 10 years i had on 05/05/2014 written to Sprint (Case # 2100579) of my deep dis-appointment in the marketing approach of the Frobinson Framily commercials. I still cannot fathom why on earth i still have to explain to colleagues on how great of a plan the Sprint Framily plan is to consumers. I do not know how much of an interest is given towards low level investors such as my self but with all that Sprint has invested a lot more can accomplished. I am sure reading this letter has you thinking since i know it all how about i give some ideas to Sprint and here is a start…..

     

    - The Most important of all we should start a “ Where Are They Now, There In The Sprint Framily” marketing campaign rather than an unknown, un-energetic campaign as the Frobinson’s Framily. Theses days there are TV Shows produced to just cater too peoples enthusiasm on watching what there favorite past television sitcom stars are up-to today. This mentality is exactly where we could capitalize with the Sprint Framily plan by instead of using an unknown Frobinson’s and substituting it with let’s say the “Seinfeld” cast or “Family Matters” cast. What better way to get a message across than having our favorite stars from the past explain how the Sprint Framily works rather than a confused Frobinson’s Framily that has a hamster in a bowl. Just imagine the excitement created from viewers who see there favorite 90’s Tv stars saying “Hello, Newman.” or “Did I Do That” when the price keeps getting lower and lower as more people enter the Framily commercial. A “Where Are They Now There In The Sprint Framily” marketing campaign will properly suit the Framily plan while getting cult like viewers impatiently awaiting the next Sprint Framily commercial.

     

    - We could mix up the Commercials by having separate groups of a family join to become one unified Sprint Framily. For example with a Tv Commercial we could hire three cast members from the “Duck Dynasty” cast who are joined by four cast members from the “Seinfeld” cast and three cast members from “Full House” cast to create one complete Sprint Framily commercial of 10 members enjoying the discounts and benefits Sprint has to offer.

     

    - We could as far as clarification goes use a more creative approach towards explaining what’s going on and how the plan works. I believe it would make a massive difference if something as simple as Air Bubbles are placed on top of everyones head. If there are two people on the commercial then Person # 1 Air bubble should write $55 while Person # 2 Air bubble should write $50 and so on as the price gets lower as more framily members enter. Air Bubbles should appear on top of each person to clarify that everyone’s price goes down the more people you add to a Sprint Framily.

     

    - We could also market the idea with a twist by using cast members current all grown up looks but inside the same sitcom houses with the same fashion they wore in the 90’s explaining the Framily.

     

    - We could excite people with amusing commercials by having someone like Ms. Swan from Saturday night live explain the Sprint Framily or get a straight to the point cast member like Kevin O’Leary from “Shark Tank” saying “ It’s All About Money” when it comes to saving with the Sprint Framily

     

    I am writing directly to Sprint and it’s business proposal site as a dissatisfied investor (Case # 2100579) who could scorn Sprint’s marketing team for too long but it will not help in succeeding in the end which is profiting. If as a company we are spending so much effort and cash on so little results for sprint customers, sprints investors, sprint employees, etc. we are all failing whether in poor service or poor revenue. In my opinion current commercials make me wonder if companies try to be annoyingly boring to gain notoriety while wasting millions of dollars on marketing. So as an ambitious Sprint investor i ask to please hear me out with a open mind by creating a marketing campaign where viewers actually enjoy commercials due to the excitement created in a Sprint “ Where Are They Now, There In The Sprint Framily” advertisement.

     

    Email - NycIdea@yahoo.com
    6 Aug 2014, 01:24 PM Reply Like
  • Those Who Wait
    , contributor
    Comments (296) | Send Message
     
    Air bubble: Marketing campaigns alone do not make a good company. You said: "current commercials make me wonder if companies try to be annoyingly boring to gain notoriety while wasting millions of dollars on marketing." Then you say they should create a marketing campaign. And frankly, I've never seen a commercial that made me excited, other than maybe Bob living large.
    6 Aug 2014, 02:05 PM Reply Like
  • DougRk
    , contributor
    Comments (1621) | Send Message
     
    The basic fault with a T-Mo/Sprint linkup is that S is spectrum rich. The premium paid to get T-Mo is better put to use making the network better. If the CLWR spectrum is ever to be used, it's going to take serious cash. T-Mo is spectrum poor and offers limited accretion, other than their hot brand name. But consider how lowly the T-Mo brand was before Legere took the reins. Heck, paying $ to lure Legere would have been better spent than acquiring T-Mo.

     

    But now that the merger is off the table, spend the billions on the network.
    6 Aug 2014, 02:28 PM Reply Like
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