Sprint names Brightstar's Claure CEO; shares -17.2%


Sprint (NYSE:S) has confirmed reports CEO Dan Hesse is leaving, and will be replaced by Marcelo Claure, founder/CEO of of mobile hardware distributor Brighstar.

Claure, 43, is already a member of Sprint's board. He'll be resigning from Brighstar, and SoftBank (OTCPK:SFTBF) will acquire his remaining interest in the company. Bloomberg states Hesse may receive a $40M+ severance package.

Shares are off sharply premarket due to widespread reports Sprint is ending its bid (for now) to acquire T-Mobile on account of regulatory opposition, as investors fear the carrier will continue bleeding share to T-Mobile, Verizon, and AT&T as an independent entity.

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Comments (10)
  • june1234
    , contributor
    Comments (4347) | Send Message
     
    Sprint was crumbling long before that. T Mobile just bought em some great PR
    6 Aug 2014, 10:37 AM Reply Like
  • JackBarton
    , contributor
    Comments (28) | Send Message
     
    Agreed, may be Marcelo Claure will bring a new sprint to Sprint.
    6 Aug 2014, 11:09 AM Reply Like
  • hksche2000
    , contributor
    Comments (1473) | Send Message
     
    After this, you have to wonder about (Chairman) M. Son's business acumen, at least here in the US.

     

    His S investment so far certainly looks disastrous with few, if any, options out. Even putting S up for sale will net him (and his shareholders!) a huge loss. And bringing S up to par with the juggernaut competition will be throwing good money after bad, even if Softbank's pockets were deep enough for such, which they aren't.
    6 Aug 2014, 11:07 AM Reply Like
  • DougRk
    , contributor
    Comments (1899) | Send Message
     
    What a mess S is. Such terrible macro decisions over the years and wrong picks on what tech to pursue.

     

    Going to take a lot of capital to turn the ship, especially if their incredible stranded spectrum holdings are to ever be monetized.
    6 Aug 2014, 11:09 AM Reply Like
  • Amir Anvarzadeh
    , contributor
    Comments (67) | Send Message
     
    Most investors in the US never looked at Softy's balance sheet and most thought they had deep pockets etc. the reason why Son pulled the bid is because he knew he couldn't outbid the French rival which would have far less tougher time acquiring T-mobile and at far shorter period. Also the break-up fee would have doubled from the reportedly $2bn to $4bn AT&T paid Deutsche telecom. With Sprint caught in the cross-fire between T-mobile and the two US giants and voice revenues looking to eventually get wiped out in the era of instant messaging, the writing was on the wall. Son had totally misread the US market and didn't see Ledger coming. With competition at home also getting tougher with both Docomo and KDDI cutting tariffs and giving big cash back his whole empire could crumble. His only saving grace is the Alibaba stake which he needs to sell to pay off hid debt and pay off some of the debt to try to keep up with LTE spending plans and spectrum purchases. Again nobody had bothered to look at Softbank's finances. Typical US analysts. Punch drunk from cheap money!
    6 Aug 2014, 11:20 AM Reply Like
  • 15346002
    , contributor
    Comments (513) | Send Message
     
    M. Son has basically done nothing but act like an over zealous teenager since Softbank bought Sprint. Has anyone ever seen a potential corporate buyer run around for one year screaming about a potential bid like this? When he bought Sprint T-Mobile was a struggling loser. in the last year T-Mobile has been turning their company around from a weaker position with a similarly weak network for the last year. Meanwhile, Sprint has done nothing but run around crying about how a merger is their only answering which has everyone thinking that an $8 stock is a $5 stock now that the merger is off due to the crying of M. Son about the state of the company without the merger. If you look at both Sprint and Tmobile there is little difference between the companies except Sprint is further ahead in network build out, but losing customers while T-Mobile is gaining customers mostly at Sprint's expense. Is T-Mobile's network that much better? No, but their focus on their business sure was. Hesse is a scapegoat. M. Son has only himself to blame. Nothing has happened to Sprint in the last year that was unexpected and the drop is stock price is due to M. Son's own doing.
    6 Aug 2014, 01:23 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (6295) | Send Message
     
    Sprint is about M Sons's other holdings which includes Alibaba.

     

    Lookk for a merger with Dish.
    7 Aug 2014, 09:49 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (6295) | Send Message
     
    Sprint's Spectrum alone dwarfs the current share price.

     

    I wouldn't underestimate M Son, he has invested a lot of money in Sprint and it's his baby.

     

    You have big boys also holding and adding to their position as an investment like Cooperman and Paulson.

     

    Lahiem
    7 Aug 2014, 10:21 AM Reply Like
  • DougRk
    , contributor
    Comments (1899) | Send Message
     
    The spectrum holdings are indeed incredible. But the band is stranded. No other carrier can use it. That means Sprint is on its own in getting equipment vendors to service them. Not to mention they don't have the money to build out at the incredible density needed to service at those short range, high frequencies. Their plans to bid at upcoming low frequency auctions tells a lot.
    7 Aug 2014, 10:35 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (6295) | Send Message
     
    Don't have money.......are you forgetting who M Son is.

     

    Wait for the Alibaba IPO, guess who is a large shareholder.

     

    It looks bad on the outside but you have to dig deeper with Sprint and why M Son bought the company.

     

    Don't forget Dish wanted to buy Sprint too. Look for a Sprint Dish merger soon.

     

    M Son hasn't even started.

     

    Lahiem
    8 Aug 2014, 06:48 AM Reply Like
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