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Sprint Nextel Corporation

5/20/2013, 3:14 PM ET

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Monday, May 20, 2:56 PM Sprint (S) acquires app developer/distributor Handmark, which has been around since the pre-iPhone era. Handmark runs an app store and (through its OneLouder unit) has developed a slew of iOS/Android apps, many of which have strong social media components. Sprint says the deal will strengthen its Pinsight Media+ targeted mobile ad platform; it comes a few months after Sprint struck a mobile ad partnership with Telefonica, and a couple weeks after a mobile content/ad deal was reached with Time. Comment! [Tech]
Saturday, May 18, 6:23 PM 32% of Q1 U.S. smartphone sales involved prepaid phones, up from 21% a year ago, says NPD. That trend could spell trouble for AT&T (T) and Verizon Wireless (VZ, VOD), whose recent growth has been heavily tied to selling costly postpaid data plans. With 72% and 61% of the carriers' postpaid bases now respectively on smartphones, they face pressure to gain prepaid buyers without cannibalizing postpaid subs. Cannibalization fears have led AT&T and Verizon to make their prepaid plans 3G-only; Sprint (S) and T-Mobile (TMUS) offer 4G. A mix shift towards unsubsidized prepaid phones could also be a challenge for Apple (AAPL), estimated to have just 8% of the Q1 U.S. prepaid smartphone market (though that's up 4x Y/Y). 15 Comments [Tech]
Saturday, May 18, 9:15 AM Leon Cooperman and partner Steve Einhorn keep it simple: Stocks (VTI) are cheap relative to interest rates and inflation. The guy who bought T-bills (SHY) has migrated to T-bonds (TLT), the guy who bought T-bonds has moved to investment grade corporates (LQD), the guy who bought IG is now in high-yield (HYG, JNK), and so on (glasses clink in the FOMC board room). Their largest position is Sprint Nextel (S) - as fans of Masayoshi Son and long-time owners of DISH, the duo like seeing two industry titans both wanting the same asset. New Citigroup (C) management should be able to double ROE over the next 2-3 years, and Transocean (RIG) sells for a significant discount to asset value. 4 Comments [Quick Ideas]
Friday, May 17, 1:38 PM "There's no way" Sprint's (S) attempt to buy Clearwire (CLWR +0.6%) succeeds without a higher bid, says Taran Asset Management's Chris Gleason, one of many institutional Clearwire investors planning to vote against Sprint's $2.97/share offer at Tuesday's meeting. Reuters has uncovered investors holding 31% of Clearwire's public (non-Sprint-owned) shares who oppose the current deal; Sprint needs a majority of public shares to be voted in favor. Clearwire is trading 10% above Sprint's offer price, and 1% below Dish's $3.30/share offer price. (previous) 21 Comments [Tech, M&A]
Tuesday, May 14, 2:47 PM Dish (DISH -0.3%) is raising $2.5B in debt to help finance its bid for Sprint (S +0.8%), and presumably demonstrate its seriousness to Sprint's board. Bloomberg reported last week Sprint has held off on giving Dish access to its books, partly due to skepticism about the satellite TV provider's ability to finance its offer (includes a $17.3B cash component). Dish had $11.9B in debt on its balance sheet as of March 30, to go with $7.2B in cash/investments. 1 Comment [Tech, Consumer, M&A]
Monday, May 13, 5:49 PM Clearwire (CLWR -3.1%) slid further towards Sprint's (S) $2.97/share offer price after Egan-Jones joined fellow shareholder advisory firm ISS (previous) in backing Sprint's bid ahead of a May 21 vote. Nonetheless, given the number of shares owned by dissident investors, many still think a higher bid will be needed. 4 Comments [Tech, M&A]
Friday, May 10, 9:59 AM Top shareholder advisory firm ISS backs Sprint's (S -0.1%) $2.97/share offer for Clearwire (CLWR -0.9%) ahead of a May 21 vote, in spite of opposition from major shareholders not named Sprint. ISS' arguments: Sprint's offer is fair, the carrier has effective veto power on any rival bid, and Clearwire looks "increasingly unviable on a stand-alone basis." SoftBank (SFTBF.PK) must be pleased, Dish (DISH) less so. Clearwire has sold off over the last 2 days, but still remains 9% above Sprint's offer price. (previous) Comment! [Tech, M&A]
Friday, May 10, 8:20 AM Dish Network (DISH) has Jefferies helping it line up $25.5B in financing for the company's bid for Sprint (S), according to Bloomberg. Jefferies and Barclays will reportedly look for one or two more investment banks to join the bandwagon to help make the Dish offer irresistible. 2 Comments [Consumer, M&A]
Thursday, May 9, 1:32 PM Dish (DISH -1.4%) owned $592M in "derivative financial instruments" tied to Sprint's (S) stock as of May 1, as well as Sprint shares worth $75M as of March 31, the company discloses in a 10-Q filed after its Q1 report. Dish also owned $950M in Clearwire (CLWR) debt at the end of Q1, nearly unchanged from $951M at the end of Q4. Consider the Sprint purchases an attempt to gain a bit of leverage as Dish pursues its bids for Sprint and Clearwire. Also: During Dish's Q1 call, Charlie Ergen stated Dish would consider partnering with another carrier if Sprint sticks with SoftBank (no surprise), and that a sale of the company wouldn't be out of the question. (previous) 7 Comments [Tech, M&A]
Tuesday, May 7, 6:10 PM Sprint (S) doesn't seem enthusiastic about Dish's (DISH) merger bid: Bloomberg reports the carrier is holding off on giving Dish access to its books due to questions about Dish's ability to obtain needed financing, skepticism about Dish's $11B cost savings estimate (Sprint thinks staff overlap is limited), and concerns about the debt burden the combined company would have. Moreover, Sprint's board has reportedly sent a letter to Dish stating its bid needs to be changed before Sprint can weigh it against SoftBank's (SFTBF.PK). (more on Sprint/Dish) 1 Comment [Tech, Consumer, M&A]
Monday, May 6, 12:39 PM Even as shareholder opposition makes it increasingly unlikely Sprint's (S +0.1%) $2.97/share offer for Clearwire will succeed, Clearwire (CLWR -0.1%) insists in a shareholder letter the offer "provides the best strategic alternative" for the 4G carrier/spectrum owner's minority shareholders. Clearwire cites a "substantial funding gap" among its reasons for backing Sprint's bid, and claims other deals, such as Dish's (DISH) $3.30/share offer, are impractical due to Sprint's opposition and Clearwire's governance structure. Shareholders vote on May 21. 3 Comments [Tech, M&A]
Friday, May 3, 4:36 PM Mount Kellett Capital, which has long been vocal about its displeasure with Sprint's (S +0.7%) $2.97/share deal to acquire Clearwire (CLWR +2.9%), says it has joined forces with 3 other major shareholders - Highside Capital, Glenview Capital, and Chesapeake Partners - to create a united front against Sprint's offer. Together, the shareholders own 18.2% of Clearwire's publicly-traded stock. With shares closing today at $3.37 and Dish's $3.30/share bid still on the table, investors are clearly betting on a higher deal price. (13D) (Crest Financial) 4 Comments [Tech, M&A]
Thursday, May 2, 2:05 PM Dish (DISH +0.1%) CEO Charlie Ergen responds in kind to SoftBank (SFTBF.PK) chief Masayoshi Son's caustic remarks, insisting Dish's bid for Sprint (S +0.4%) is superior and appealing to nationalism along the way. "We're offering a higher price ... We are an American company ... Operations command control will be in America. That's good for jobs." Ergen also argues SoftBank's Japanese corporate culture will lead to integration challenges. "If you have to lead tens of thousands of employees, culture matters." Of course, Son and SoftBank are often seen as mavericks in Japan. (more on Ergen) 6 Comments [Tech]
Tuesday, April 30, 5:31 PM Pres. Obama is expected to nominate Tom Wheeler, a former CEO for both the cable and mobile phone industry's top trade groups (the NCTA and CTIA), to be the next head of the FCC, the WSJ reports. Given Wheeler's background and the fact he supported the AT&T/T-Mobile merger (shot down in part by the outgoing Julius Genachowski), albeit on grounds it would give the FCC a chance to impose new regulations, AT&T (T) and Verizon (VZ) might be happier with this report than Sprint (S) and MetroPCS (PCS). If Wheeler gets the job, he'll arrive ahead of a major spectrum auction whose rules are still being hotly debated. 2 Comments [Tech]
Tuesday, April 30, 9:51 AM SoftBank (SFTBF.PK) CEO Masayoshi Son continues to insist his firm won't raise its offer for Sprint (S +0.3%) in response to Dish's (DISH) bid. "Why should we? We are already providing a better deal than the Dish proposal." Son goes on to call Dish CEO Charlie Ergen an "amateur" who is "desperate" to find a use for Dish's 4G spectrum. He adds SoftBank's offer is worth $7.65/share to Sprint, and Dish's $6.31/share, after factoring synergies, delays, and penalties; Dish values its proposal at $7, and SoftBank's at $6.22. (previous) (more on Dish/Sprint) 9 Comments [Tech, M&A]
Monday, April 29, 4:04 PM Clearwire (CLWR +0.3%) will take another $80M monthly financing installment from Sprint (S +0.1%) as both companies now weight buyout offers from Dish (DISH +1.5%). Clearwire's move comes as Guugenheim downgrades Sprint to Hold on a belief Clearwire shareholders will shoot down Sprint's $2.97/share buyout offer (shares closed at $3.44), which is set for a May 21 vote. Guggenheim thinks SoftBank (SFTBF.PK) might stop Sprint from making a higher bid, since a successful deal could make Sprint more attractive to Dish (the firm deems Clearwire "Dish's real target"). (previous) (CLWR interest payment) Comment! [Tech, M&A]

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