Media speculation has been swirling around US cellco Sprint Nextel since the news of AT&T’s US$39bn agreement to buy T-Mobile. Now, two new names – CenturyLink and Comcast – have been mentioned as potential acquirers of Sprint. A Bloomberg report…
Media speculation has been swirling around US cellco Sprint Nextel since the news of AT&T’s US$39bn agreement to buy T-Mobile.
Now, two new names – CenturyLink and Comcast – have been mentioned as potential acquirers of Sprint.
A Bloomberg report yesterday cited one analyst, Chris Larsson from Piper Jaffray, saying that fixed-line operator CenturyLink would be the most logical acquirer of Sprint because it has the financial resources available, needs a wireless business and has shown an appetite for large deals.
CenturyLink recently closed its US$22.4bn merger deal with Qwest Communications, and announced an agreement to acquire data centre company Savvis in a US$2.5bn cash and stock merger.
Cablecos such as Comcast might also be interested in acquiring Sprint in order to add a wireless option to their services, Sergey Dluzhevskiy, vice-president of Gamco Investors, told the newswire.
Sprint and CenturyLink said they would not comment on rumours and speculation, while Comcast did not reply to questions before the press deadline.
Sprint is facing a difficult set of choices. If the AT&T-Mobile deal gets approval from regulators, it will be pushed firmly into the position of number 3 wireless carrier behind the new AT&T and Verizon Wireless.
Sprint’s CEO told senators last week that if the AT&T/ T-Mobile is approved, the US would fall behind the rest of the world advances in technology and innovation.
Dan Hesse was also reported to have said that the deal would put Sprint in a position to be acquired, and that it would not be able to compete.
