Alltel/Sprint merger...

I was dissapointed Alltel did not pick any spectrum up in the 700 auction. I posted in another thread already, thinking this either means Alltel is not planning on sticking around for too many more years....or a merger is in the near future. Its hard to imagine Alltel plans on becoming a national carrier if they do not become aggressive in buying spectrum or other carriers.

Maybe a buyout of US Cellular or Metro PCS, or a merger with Sprint is coming? On the flip side, maybe the private equity firm that owns Alltel plans on chopping up Alltel and selling out eventually, to make hefty return on investment.

 

I doubt Scott Ford would have agreed to take Alltel private if that's what Goldman Sachs & TPG were planning on doing. Not to say it couldn't happen but I highly doubt it.

I think, based on quotes from an Alltel spokesman (an article I can't find now, of course) that uses words like, "strategic," we're going to see some interesting things from them in the next few months. I'd sort of like to see Alltel buy Sprint but I'm not exactly sure if it would be a good thing for either company.

It's going to get interesting, that's for sure.

 

Sprint has been having a tough go of it lately but for a variety of reasons, I don't think Alltel will buy them out. I wouldn't mind seeing Alltel buy US Cellular and/or try a merger with Sprint. It would probably take a year or two to get everything running smoothly, but it would result in a strong carrier, easily within striking distance of Verizon.

Realistically, Alltel would probably try to buy US Cellular, or possibly Cricket or Metro PCS. The other possibility is Alltel gets chopped up and sold to other carriers.

 

Sprint stock is low. Seems like if anyone is going to buy them, now is the time. Maybe there's a "magic number" Alltel is waiting for and when Sprint stock hits that number they'll pounce.

 

i really am not sure if the owners of Alltel are ready to take on that sort of a long term merger, that will take years, taking over a ton of debt, and trying to fix 3 years of troubles.

i would expect for them to continue to do what they have been doing, and then eventually sell Alltel out.

 

When people have talked about other companies (even T-Mobile) buying them out it's often suggested that whoever buys SpriNextel might possibly separate the CDMA company from the iDEN (Nextel) company. Part of what may be making S-N not profitable is that the company has to deal with two incompatible technologies. AFAIK the CDMA PTT solution does not work as well as the iDEN "Direct Connect" feature and that's pretty much one of the only reasons why some of their "trades" people hang on to S-N and it's only because of the "Direct Connect" PTT service. I think before Sprint PCS bought Nextel they were doing OK financially or maybe I'm remembering incorrectly. At present Nextel's a boat anchor on Sprint.

 

I'm not sure Scott Ford has much say, its more a decision of the major shareholders on the sell out. I honestly don't see Ford being with the company too much longer, but I could be wrong on that. I think he does a good job, but his phat salary could be expendable when it comes time to lean out.

Now would be the time to buy Sprint, when their stock is worth nothing. As other posters have stated, it would be major ordeal in merging the companies, even if they use the same technologies. And that doesn't solve the issues with the iDen/Nextel garbage.

 

As unlikely to happen as T-Mobile buying Sprint. I don't see it happening.

 

they may not have been big winners in the auction but still dropped almost 2 billion. Alltel might be backed by big money, but i dont think those guys are going to break the bank for a crumbling Sprint, even at Assett only value, Sprint is still worth in the tens to hundreds of billions, hard to say really depending on if you count Nextel side

 

Poor Nextel really is the red-headed step-child of wireless.

 

Right now will all outstanding stock they are worth 17-18 billion. Less then what P/E paid for Alltel. Asset wise..hmmm...not sure exactly.

 

Exactly, and this is why Alltel should grab Sprint,
now is the time, while Sprint's value is still low enough.

Alltel would be #3

But then again, I don't think Alltel wants to merge with a company that is losing the wireless war.
Alltel wants to merge with a company that is doing well.
Sprint may just crumble, and Alltel may just want to stand back and watch that happen. Then act later.

Most likely IMO, US Cellular will be Alltel's next dinner, and then some Cricket for dessert! LOL

 

Sprint, Yes. metro pcs and cricket....not really. I really dont think Alltel is interested in buying a bunch of prepaid customers. Thats just not their MO.
Even if sprint had zero customers they would still be getting a solid network and lots of spectrum.

 

So many people have been burnt by the industry, I think that prepaid is more valuable than the carriers and other people think. All the carriers already bill a month in advance. All prepaid involves is setting up an account balance and not tying the person to a contract. As the market demands increases, it will happen. Thats the beauty of a free competitive market. I think that prepaid is the way of the future.

As far as Alltel buying them, I don't see that happening.

 

Yes I agree, but i way that as the American standard of living slides and less people have any kind of credit prepaid will become the future.

With Alltels $1000 bad credit deposits and reluctance to offer an unlimited plan, unlimited prepaid doesn't seem like their thing.

 

I think Sprint and Alltel joining would be nice.

 

1000 are they crazy that's way to much deposit. some times good people have credit trouble like a lay off / sickness / devoice and many other ways there is no reason to try to break it off in people.

 

Yes Sprint stock is low. I wonder if there is a "magic number" and if they are going to "pounce"

Would Sprint be willing to sell out?

 

Hows about a Username Change for you, Mr LGCrazy!!!:browani:

 

If Alltel bought enough stock, it wouldn't matter.

 

I realize that if they bought enough stock, it don't matter. But, I'm just wondering if Sprint might be quietly praying that someone will come along and buy them up - end their misery.