December 10, 2004

Sprint and Nextel enter merger talks

Originally posted by MobileTracker from MobileTracker, reBlogged by ts

sprint nextel merger Breaking news: According [paid subscription req.] to the Wall Street Journal, Sprint and Nextel have entered merger negotiations. The merger would treat the two companies as equals. Sprint is the nation s third largest carrier while Nextel is the fifth (but most profitable thanks to higher revenue per customer). Sprint s landline phone business would also be included in the deal.

MobileTracker will follow this rumor closely.

Update: More information has been added to the WSJ story. Some facts and figures:

  • Deal would be valued north of $30 billion
  • Top three wireless carriers (Cingular, Verizon, Sprint/Nextel) would control 75% of US market
  • The new company would have 38.5 million customers
  • Both companies saw a boost in stock trading today: Nextel shares closed up 6.5% while Sprint shares closed up 8%.

Update 2: The New York Times has a similar piece posted for tomorrow s paper. No paid subscription required.

Via MobileTracker