Is Sprint Gearing Up for Another Disastrous Acquisition?

Earlier this year, Sprint  (NYSE: S  ) finally shut down the Nextel platform after years of technical incompatibilities within its network. That's why it's so peculiar that The Wall Street Journal reported last week that Sprint is considering bidding for smaller rival T-Mobile  (NYSE: TMUS  ) to put more pressure on AT&T  (NYSE: T  ) and Verizon  (NYSE: VZ  ) . SoftBank CEO Masayoshi Son, known as an ambitious leader, is reportedly pushing this possible deal that would be valued at more than $20 billion.

The biggest challenge that such a merger would easily be regulatory scrutiny. Seeing the domestic wireless industry move from four large national carriers to three could have detrimental impacts to competition and, ultimately, the consumer. That's especially true as aggressive as T-Mobile has been with its "Un-Carrier" ways, which have sparked many competitive responses from its larger rivals. If T-Mobile were to get swallowed by Sprint, consumers would likely suffer for it.

In this segment of Tech Teardown, Erin Kennedy discusses Sprint's latest move with Evan Niu, CFA, our tech and telecom bureau chief.

Want to get in on the smartphone phenomenon?
Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access The Motley Fool's latest free report: "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2766543, ~/Articles/ArticleHandler.aspx, 7/30/2014 2:03:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement