Japan's Softbank May Acquire Sprint
Sprint = $12.8 Billion T-Mobile = $39 Billion What's up with that?
Just like AT&T and T-Moblie. Just talks of a $39 billion deal.
Verizon , now that's a sale of Alltel for $28.1 billion to VZW.
Sale- AT&T to Cingular for $41 billion
Sprint IS a publicly traded company. At the close of the market yesterday, its stock price was $5. Acquisitions of publicly-traded companies are almost always based on their stock price and the calculated sum of all the shares x the share price (approximately). There's also debt to consider and market capitalization. Sprint has a huge amount of debt.
Eric M. Zeman said:
T-Mobile USA isn't a publicly traded company. It's a subsidiary of Deutsche Telekom.
Sprint IS a publicly traded company. At the close of the market yesterday, its stock price was $5. Acquisitions of publicly-traded companies are almost always based on their stock price and the calculated sum of all the shares x the share price (approximately). There's also debt to consider and market capitalization. Sprint has a huge amount of debt.
^ what he said.
Makes you wonder what potential investors see for Sprint Nextels future. Softbank seems to see good things.
I'll assume that this will be for a few iterations of the iPhone. This was the price to just get the iPhone with Sprint. Verizon probably paid the same, if not more due to them having more subscribers.
They've been reselling used ones as well for $50 less with or without contract. They were either essentially damaged before, or activated and then returned and were in great condition. Those were pure profit so they have been recouping their losses through that way.
First, the way the press release and corresponding news article are worded it appears that the $12.8 billion figure is what Softbank is expecting to pay to purchase the stock associated with this transaction. As such that figure would not include any of Sprint's debt. The T-Mobile debt that would have been assumed by AT&T is included in that $39 Billion price tag.
The debt would typically not be included in the transactional value, as Sprint likely will not end up as a solely owned subsidiary of Softbank.
This brings up the second key point, the $12.8 Billion figure does not necessary reflect a purchase of all of Sprint. There are r...
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