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Sprint's CEO Expects M&A-Related Announcement 'Soon'

Dan Jones
8/1/2017
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Sprint's CEO says he expects an announcement will be "coming soon" after the carrier's many discussions about its potential M&A options, which was one of the main topics of analysts' questions on Sprint's first-quarter financial year 2017 earnings call.

Sprint Corp. (NYSE: S)'s Marcello Claure said Tuesday morning that the carrier had plenty of "strategic" options regarding M&A. "We've been having a lot of discussions," he said. Claure stressed, however, that Sprint would not be announcing any deal on the earnings call.

"We think an announcement will be coming in the near future," Claure said, adding that this would likely be a "vertical" or "horizontal" integration with one of the potential partners that Sprint is talking to. (See Charter Rebuffs Sprint, Still a SoftBank Target?)

"We've been going at this since the spectrum auction ended," Claure said.

He did say he was surprised by some of the reports around a potential tie-up with Charter Communications Inc. . "Sprint was never offered for Charter to buy; it was part of a bigger offer," he said on the call. (See Sprint Proposes Merger With Charter Report.)

Most of the rumors around a Sprint merger so far have centered around Charter or T-Mobile US Inc. The CEO, however, repeatedly said that Sprint has a lot of potential options.

For the first quarter of its 2017 fiscal year, Sprint reported its first profit in three years. Net income was $206 million -- or $0.05 per share -- compared to a loss of $302 million -- or $0.08 EPS a year ago. Revenue for the quarter was $8.16 billion, up from $8.01 billion last year. Sprint added 61,000 total customers for the quarter.

Sprint's shares are up at $8.45 -- a 5.89% climb -- in morning trading Tuesday.

— Dan Jones, Mobile Editor, Light Reading

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tyrellcorp
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tyrellcorp,
User Rank: Light Beer
8/2/2017 | 9:47:29 AM
Re: so, who will be?
Sprint's 2500 spectrum could allow Charter enter many new markets with fixed wireless and OTT TV.   Sprint might be much better off as a WISP than a mobile carrier, using MIMO outdoor antennas if needed.  They could still stay in mobile as a secondary player, perhaps roaming or parterng with TMO.
bosco_pcs
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bosco_pcs,
User Rank: Light Sabre
8/1/2017 | 4:58:07 PM
Re: T-Mobile
I said this before. It is obvious Sprint wants a merger partner, TMUS or anyone. By floating Warren Buffett and John Malone previously, and Comcast and now Charter, Son San is appearing to be desperate. Why, Sprint just has too much debt and its equity is not much of a currency. The latest rumor is Softbank SFTBY is going to line up 3 bankers. But Softbank also has a lot of debt. Crude as it may sound, you cannot marry off your undesirable offspring without a hefty dowry. If Son San wants his potential in-law to pay for the cost of the marriage, he is dreaming
mendyk
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mendyk,
User Rank: Light Sabre
8/1/2017 | 1:20:21 PM
Re: T-Mobile
Claure says it will be either a vertical or a horizontal integration? Why not diagonal?
DanJones
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DanJones,
User Rank: Blogger
8/1/2017 | 1:06:46 PM
Re: T-Mobile
T-Mobile's CFO is leery of having to deal with Sprint's financial structure as is though.
DanJones
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DanJones,
User Rank: Blogger
8/1/2017 | 12:48:03 PM
so, who will be?
The CEO said that a cable-mobile link-up would definitely make sense for some operator because they'd be able to use the cablecos infrastructure for 5G densification for instance.
danielcawrey
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danielcawrey,
User Rank: Light Sabre
8/1/2017 | 12:40:36 PM
T-Mobile
It's got to be T-Mobile. The deal makes too much sense. 

Together, the two companies could actually compete. As it stands, the market is dominated by two huge players in Verizon and At&T. 
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