AAPL Stock: 118.88 ( + 1.13 )

Printed from

Sprint close to finding Nextel buyer, hurdles appear

updated 12:50 am EDT, Fri October 3, 2008

Sprint selling Nextel soon

Sprint has discovered several interested parties who wish to purchase its Nextel business unit, but the wireless provider is facing several obstacles before the sale can be finalized. The Wall Street Journal reports that Sprint's $35 billion 2005 purchase would likely see a deal in the area of $5.4 billion at least, due to the amount of debt that would come with the acquisition. Interested bidders have expressed some resistance to this expense, unless the equity included in the deal were insubstantial in comparison.

In addition to the above issue, separating Nextel from Sprint will be a costly procedure, since over the past few years, Spring has integrated Nextel's billing and customer service departments with its own systems. Sprint may also have trouble offloading the debt, due to contractual obligations.

Insiders say that NII and Cerberus Capital Management are among the bidders, with several other private firms showing interest as well.

The current credit issues in the US would also make a deal difficult to negotiate, since financing will have tighter restrictions. Operating expenses could be prohibitive as well, with about 30,000 cell towers in the US.

by MacNN Staff



Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented