Sprint could go out of business if merger with T-Mobile falls through

Sprint could go out of business if merger with T-Mobile falls through


NEIL: ALL RIGHT. WELCOME BACK, EVERYBODY. WITH THE DOW DOWN ABOUT 40 POINTS, SPRINT AND T-MOBILE ANNOUNCED A AGREEMENT TO EXTEND A DEADLINE FOR THEIR PROPOSED ROUGHLY 26 MILLION-DOLLAR MERGER DEAL. THIS LOOKED LIKE A GOOD POSSIBILITY. NOW ANYONE’S GUESS. A JUMP BALL. CHARLIE GASPARINO AT MILKEN INSTITUTE CONFERENCE OUT IN CALIFORNIA. CHARLIE, WHAT ARE YOU HEARING?>>I GUESS YOU COULD SAY THIS IS SEMIPOSITIVE FOR THE DEAL, NOT NECESSARILY SPRINT. I RAN INTO THE DOJ ANTITRUST CHIEF, MACH KIM DELLRAHIM A NEW ISSUE EMERGED THAT COULD PUSH IT INTO A POSITIVE LIGHT. HERE IS WHAT HE HAD TO SAY. BIG CONCERN, ANTITRUST 30,000 FEET, GOING FROM FOUR MAJOR WIRELESS CARRIERS TO THREE. THAT THE COMBINED SPRINT AND T-MOBILE ELIMINATES OBVIOUSLY A CARRIER AND COMPETITION. LET ME ASK YOU THIS I’VE BEEN READING UP ON SPRINT’S FINANCIALS LATELY. YOU MIGHT JUST GET JUST THREE CARRIERSES ANY WAY IF THEY DON’T MERGE? ARE YOU CONCERNED THAT SPRINT MIGHT NOT BE HEALTHY ENOUGH TO SURVIVE, THEREFORE THAT IS A FACTOR IN THIS MERGER?>>WELL OF COURSE. NUMBER OF CARRIERS AND COMPETITION THAT YOU KNOW, OF ANY POTENTIAL MERGER WILL LEAD TO IS A FACTOR THAT WE CONSIDER. WHETHER OR NOT A COMPANY IS FAILING OR WILL GO OUT OF BUSINESS IS A FACTOR. THERE IS LAWS ABOUT THAT. CALLED A FAILING FIRM DEFENSE IN ANTITRUST. AND THERE IS, ENERGY SOLUTIONS WAS A RECENTLY LITIGATED CASE WHERE THERE WAS SOME PRONOUNCEMENTS WHAT THE STANDARDS ARE THAT WE LOOK AT AND THAT IS SOMETHING, IF THE PARTIES RAISE THAT WE WOULD CONSIDER.>>HAVE THEY RAISED IT?>>THEY HAVE DISCUSSED IN PUBLIC TALKING ABOUT SOMEHOW A FLAILING COMPANY AND IT IS A FACTOR THAT WE CONSIDER. AND WHETHER OR NOT IT MEETS THE STANDARDS, THE LEGAL STANDARDS WE HAVE TO CONSIDER IS A DIFFERENT STORY.>>HOW HIGH UP IS SPRINT’S FINANCIAL SITUATION ON YOUR CONSIDERATION LIST?>>WELL IT IS CERTAINLY PART OF THE REVIEW.>>WELL, THERE YOU HAVE IT, NEIL. I MEAN MAKAN DELRAHIM, THE ANTITRUST CHIEF IS LOOKING IF THIS DEAL DOESN’T GO THROUGH SPRINT MIGHT GO OUT OF BUSINESS. I’M TELLING YOU THAT IS ONE OF THE MAJOR DEFENSES THAT SPRINT AND AT&T ARE SAYING TO THE JUSTICE DEPARTMENT ANTITRUST DIVISION, TO THE STAFF, SOME OF WHOM ARE PRETTY SKEPTICAL. WHAT THEY’RE SAYING ESSENTIALLY THIS, YOU’RE WORRIED THERE WILL BE ONE LESS CARRIER WE MERGE IN WIRELESS. GOT THAT. YOU ARE GOING TO GET ONE LESS CARRIER ANYWAY BECAUSE OF SPRINT’S PRECARIOUS FINANCIAL POSITION IF THIS THING DOESN’T HAPPEN. ACCORDING TO DELRAHIM, THAT IS SOMETHING THEY’RE CONSIDERING. IF YOU’RE LOOKING TO GAMEPLAN THIS, IT IS ON HIS RADAR SCREEN, YOU HAVE GOT TO SAY THIS ARGUMENT IS A NET POSITIVE FOR THE DEAL GOING THROUGH. NOT SAYING IT IS GOING THROUGH BUT IT IS DEFINITELY A NET

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About the Author: Oren Garnes

27 Comments

  1. So as i understand it sprints parent company is southern Pacific railroad if so i highly doubt it'll go out of business

  2. Any other business would have long ago. Why do we have to prop Sprint up any longer, let it fail. No bailouts!

  3. Sprint is the best cell phone provider period. However they do not have as much coverage
    If Sprint was covered in the Mountains I would have Sprint #SaveSprint

  4. How is T-Mobile paying for this deal? Are they issuing new shares, taking a loan, etc? Can someone answer, its for my class project.

  5. STOP LYING SPRINT, YOUR SERVICE SUCKS!!! STOP LYING, I RENT PROPERTY AND GUESS WHAT. EVERYTIME RENTERS COMPLAIN THEY DON'T HAVE SERVICE. I SAY ONE THING, YOU MUST HAVE SPRINT, AND WHAT IS THE REPLY, "HOW DID YOU KNOW". YOU ARE DONE, DON'T ANYONE BUY ANYTHING FROM THAT CRAPPY COMPANY, SPRINT. FIRE THAT LIAR TOO.

  6. Have been with Sprint since 1998 it's been a really good carrier good price for the services provided good coverage. And if you live in a spot with weak signals they will provide you with a booster free of charge

  7. I live like an hour out of the city and I have Verizon and Sprint and Verizon doesn't get any service at my house but Sprint does…

  8. Merger is being blocked by the Democrats because tmobile president stayed at one of trump's hotels. They think trump will benefit from this. Its political

  9. I'm guessing If Sprint goes bust, then Sprint's spectrum and infrasctructure (😅) is sold at bankruptcy auction to the highest bidder. If T-Mobile buys Sprint, then Sprint's spectrum and equipment doesn't become available for sale. In essence Sprint's debt must be lower than its spectrum and equipment 😅 combined.

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