Hesse: Sprint Not a Risk Despite Big Investments
The topic came up when Hesse filmed a slot for Jim Cramer's Mad Money live at the CNBC booth at the convention center. Cramer noted that the company is spending big on the iPhone and asked if this massive spend could be a risk for the company.
There has recently been talk of Sprint being a possible bankruptcy risk. Much of this speculation comes from a report issued in March by Sanford C. Bernstein & Co. Inc. analyst Craig Moffett, which described a bankruptcy filing as "a very legitimate risk." (See Sprint: A Bankruptcy Risk?)
Hesse acknowledged that Sprint has taken on two significant investments -- subsidizing the iPhone and upgrading its 3G and 4G network at the same time -- but suggested that as long as the company "executes well" that investments will be a long term benefit rather than a problem. (See Sprint Sees iPhone Subsidies as Necessary Evil.)
"I don't see it as a risk," Hesse told Cramer and the large crowd watching.
Hesse noted that the company had raised billions. The debt market is "eager" to invest in Sprint, the CEO claimed. (See Sprint Chases $3B in Vendor Financing.)
— Dan Jones, Site Editor, Light Reading Mobile