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Sprint in Partnership Talks With Charter and Comcast

Jun 27, 2017  •  Post A Comment

Sprint Corp., the fourth-largest wireless service provider in the U.S., is reportedly in talks about a wireless partnership with cable giants Charter Communications and Comcast Corp. Reuters reports that Sprint’s share prices were up by as much as 6% today after news broke about the talks.

“Sprint, controlled by Japan’s SoftBank Group Corp., has entered into a two-month period of exclusive negotiations with Charter and Comcast, while putting its merger talks with T-Mobile US Inc. on hold until the end of July, sources told Reuters,” the story reports.

The report cites Jonathan Chaplin, an analyst with New Street Research, saying a potential deal involving the companies could yield an estimated $35 billion-$40 billion in hard cost synergies. “However, there are strategic and economic benefits that may be far greater for all parties than just the direct cost savings,” Chaplin adds.

“Chaplin said the move was a ‘clear’ negative for T-Mobile, Verizon Communications Inc. and AT&T Inc.,” the report adds. Reuters notes that T-Mobile’s share prices fell 3.3% today to $61.06.

2 Comments

  1. Let’s not assume this is done. And if it is it will be the merger of two companies that have the most disliked customer service in America. Without it’s local monopolies, Comcast would be struggling to compete with their terrible service. Sprint is a fine print expert. Sprint’s ads for their “deals ” are misleading and do their best to keep the fine print as small as they can legally get away with. Then call their robot help center. This may not be as great as it appears the face.

  2. Let’s monopoly up!

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