Rumor Mill
Thoughts On Google Buying Sprint Wireless
Just an idea I was pondering with Google so eager to join the wireless data frenzy and the fact they have already teamed up with Sprint on developing WiMax, anyone else see it in th realm of possibility that Google might just up and by Sprint. Sprint already has a great data network(voice however is not as great), large customer base, and plans to keep advancing its it data capabilities. Google goal is for everyone on earth to have free unlimited Internet access(this means more goolge searches which means more and more ad money for google), also even though cellular is such a current market it's future growth throughout the world is off the charts. Any thoughts on this happening?
...
It is an interesting thought that you raised, but the likelihood of it happening could be slim just given the fact that synergies will not be materialized to the level if other companies buy out Sprint. I think Sprint will be bought out but the key is when and by whom. Google first needs to get into the data game more than they are. The deal with Sprint on Wimax allows this to happen and if they secure spectrum in the 700 MHz auction then we will see what they do. As they further progress, Google, and the partnership is successful then yes look for them to make some kind of play for Sprint. Not sure if Google could actually afford all of Sprint but majority of it, they could. If the discount rate and fed funds rate continue to go down then t...
(continues)
(continues)
...
Overall, I think Sprint does have some assets that if it was able to get some infusion of capital and bring new management it could be stronger. Wimax and its spectrum positions are very important and industry leading. More detailed; I think that Comcast will buy out Sprint, after the JV of course, because Comcast has a big issue with Verizon’s Fios and Wimax is probably one of the only true technologies that could match Fios.
...
