& cplSiteName &

Rumor Mill: SoftBank Still Eyeing Charter

Mari Silbey

The media merger environment is a lot like middle school: both rely on he-said/she-said gossip that's difficult to ignore.

In today's case of a rumor gone rampant, London newspaper The Times is reporting that Sprint Corp. (NYSE: S) owner SoftBank Corp. has bought new shares in Charter Communications Inc. amounting to just shy of 5% of the company's worth. According to The Times, the move is the prelude to a new attempt to merge Sprint and Charter, a deal which has long been discussed, but never formalized in any way. (See Sprint Plus Cable, Still on the Table – Report.)

Here's the kicker, however: The Times story appears to rely on reporting by the site Betaville, which is run by Ben Harrington, a financial reporter and former editor at The Daily Telegraph. The Betaville report lies behind a subscription paywall, though, and even more importantly, it's categorized as a "RARE" alert by Harrington. Harrington defines posts as RARE when they're based on "Market gossip that hasn't been tested through all formal journalistic channels (public relations executives, bankers etc)." He also adds in his definition that any rumors labeled as RARE "might be total codswallop but then again there may be something in it, so it's worth airing on Betaville."

In other words, the SoftBank/Charter report could be true, but it's far from a sure thing.

Get your strategic roadmap to the technology trends and business cases shaping the cable industry! Join us for the Cable Next-Gen Technologies & Strategies event in Denver on March 20-22. Don't miss this exclusive opportunity to network with and learn from industry experts -- communications service providers get in free!

While there is high-level justification for a merger between a cable operator and a wireless carrier, the details get hairy when an actual deal is in play. Charter, for example, already has an MVNO deal in place with Verizon Communications Inc. (NYSE: VZ) and has been very aggressive in laying out a strategic plan for its future in the wireless industry. At the moment, that plan does not include integrating assets from Sprint, but rather on expanding gradually from offering wireless connectivity in consumer homes to merging its WiFi assets with some existing and some new cellular technologies. (See Don't Laugh, Charter Is Testing '6G' Wireless.)

It's also been suggested in the past that Charter CEO Tom Rutledge does not favor a tie-up with Sprint. He might not get the last word on a deal given other financial interests in the company, but his will won't be glossed over either. If Rutledge is against a deal, it will take a lot of handwringing to get a Charter/Sprint merger done.

— Mari Silbey, Senior Editor, Cable/Video, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Sabre
3/22/2018 | 10:13:52 PM
Re: As John Legere once said- “Sprint Like HELL”
The under 5% figure likely means the company considers this a good investment, but is unsure of taking a larger interest/larger control.
User Rank: Light Beer
3/14/2018 | 8:09:00 AM
Re: As John Legere once said- “Sprint Like HELL”
why is this happening
Clifton K Morris
Clifton K Morris,
User Rank: Light Beer
3/13/2018 | 12:53:26 PM
As John Legere once said- “Sprint Like HELL”
I can’t see how this would work unless Charter/Spectum was the controlling shareholder. Sprint made a lot of goofy and silly mistakes in years past. Many of these mistakes damaged Sprint’s brand reputation and allowed T-Mobile to steal customer base and allow T-Mobile to become #1 in gross subscriber additions year-over-year and also #3 in Net Customers in the US. Even with favorable terms, there is almost too much that they have to do to deliver service which would win awards.

It’s almost as if being insulated in Kansas prevents the company executives from making service delivery (something people pay for) a company priority.

A few years ago, I read that Sprint outsourced management of its billing system to the company whom wrote the software. I shook my head when a I read that news article and contract award. If a company doesn’t want to own billing in-house, I’m not sure how the customer service would work, but I imagine the call center training teams are racking up the airline miles. 😜
User Rank: Light Sabre
3/12/2018 | 4:07:55 PM
Public relations executives are a formal journalistic channel?
Featured Video
From The Founder
Ngena's global 'network of networks' solves a problem that the telecom vendors promised us would never exist. That doesn't mean its new service isn't a really good idea.
Flash Poll
Upcoming Live Events
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Dell CTO: Public Cloud Is 'Way More Expensive Than Buying From Us'
Mitch Wagner, Mitch Wagner, Editor, Enterprise Cloud, Light Reading, 3/19/2018
Eurobites: Cambridge Analytica Feels the Heat
Paul Rainford, Assistant Editor, Europe, 3/20/2018
IBM Faces Age Discrimination Accusations
Mitch Wagner, Mitch Wagner, Editor, Enterprise Cloud, Light Reading, 3/22/2018
HR: Cable Dominates US Broadband
Carol Wilson, Editor-at-large, 3/21/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed