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Sprint Continues To Snatch Up Affiliates

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Wasn't Sprint in financial trouble not long ago?

evilbstrd666

Dec 16, 2005, 8:05 PM
A few years back I heard rumors that Sprint wasn't doing so well....any grounds for this?

Either it was a lie, or they really turned it around.
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BegToDiffer

Dec 16, 2005, 8:13 PM
Not that I can answer this question but, does anyone know exactly how much Sprint has spent buying all these affiliates, not to mention how much was actually paid to merge with Nextel?
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halo

Dec 16, 2005, 8:28 PM
Purchasing Nextel was a STOCK transaction, not a CASH transaction. Big difference. They were in debt, but were actually doing a good job climbing their way out of it. Nextel might of had debt when they were purchased, but, from what I understood, they were operating completely in the black. I'm sure the merger gave Sprint Nextel a bigger credit line should they need it.
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csnowbordr

Dec 17, 2005, 9:30 AM
if you read the article, 3.4 billion for Alamosa, 1.4 billion for U.S. Unwired, 427 million for IWO holdings, & 287.5 for Gulf Coast Wireless, and another 98 million for enterprise...
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BegToDiffer

Dec 17, 2005, 5:59 PM
Yes, I suppose that reading the article would actually help, but I was being lazy...
Here's hoping they planned on the contingency of having to spend lots of cash buying up all these companies...
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muchdrama

Dec 18, 2005, 8:50 PM
BegToDiffer said:
Yes, I suppose that reading the article would actually help, but I was being lazy...
Here's hoping they planned on the contingency of having to spend lots of cash buying up all these companies...


Fortune 500 companies don't throw around this kind of cash willy-nilly. Sprint knows what it's doing.
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nextel18

Dec 20, 2005, 9:25 PM
they have the best managment, they also are going to have a lot of synergies from the core merger as well as the affiliates buyups.. when they combine they will have one operating which will reduce costs.. plus they are already generating plenty of cash as it is. in addition as i mentioned in the other post to you they are going to spin off a division which lets $7 billion off their books..

hope that helps 🙂
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nextel18

Dec 20, 2005, 9:27 PM
i forgot to add.

they have many deals.. such as the big one the cable deal..

they will be fine.
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nextel18

Dec 20, 2005, 9:24 PM
it is close to being $12.9 billion dollars not including the future purchase or what not with UPCS or UBIQUITEL.

sprint only had to pay $2.5 billion dollars in cash, the rest was all in stock, which doesnt hurt their balance sheet or anything..

the purchases of the affiliates are mostly all in cash, but they will be borrowing the money with the banks. they also are spinning off their local which lets $7 billion off their books, legally. in addition, they are creating $10 billion plus in synergies with the merger as well as as more synergies with the buying of affiliates.

so everything will pay out in the end.. especially with the cash that they are generating.
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muchdrama

Dec 18, 2005, 8:47 PM
evilbstrd666 said:
A few years back I heard rumors that Sprint wasn't doing so well....any grounds for this?

Either it was a lie, or they really turned it around.


Sprint accrued quite a bit of debt securing the massive amount of 1900mhz spectrum it needed before the company started up in the mid nineties. Building a network from the ground up as a means of using that spectrum certainly didn't help. But it's all paid off: 1900mhz spectrum has proven to be THE resource to have in the battle to be number one. In addition to this, they've also got tons of lucrative 2.5mhz spectrum just waiting to be utilized...and they picked the perfect business partner as well...Nextel has the other half of said 2.5mhz sp...
(continues)
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Darth Ridiculous

Dec 20, 2005, 3:23 PM
Sprint Nextel has so much money they cant count it, they have to weigh it! 🤣
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nextel18

Dec 20, 2005, 9:26 PM
yea, they have a lot of cash... also remember the cable deal as well as other deals..

they will be fine.
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nextel18

Dec 20, 2005, 9:21 PM
they did, but they have great managment and a better business plan/model which helps them to lead in many metrics and turn this around..
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