 BF69Premium
join:2004-07-28
Camden, TN | reply to bookertdub
Re: Speed up LTE Deployment? said by bookertdub:I wonder with this acquisition by Softbank, will it speed up Sprint's LTE deployment?
SoftBank revealed Monday that it will make a massive investment in Sprint. Most of the money, $12.1 billion, will be distributed to Sprint shareholders, and $8 billion will be new capital that will go toward the strengthening of Sprint's balance sheet.
So they get $20 bill and will not spend a single penny on infrastructure. $20 bil and they could outbid Verizon and at&t during the spectrum auctions. Or at the very least make the cost of that spectrum for at&t and Verizon much more expensive.
This is why modern stocks suck. The whole intention of stock is to raise capital to EXPAND the business not just to hand out more money to investors. The money the investors get is supposed to be from increased revenues of said expansion of the business. |
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| said by BF69:said by bookertdub:I wonder with this acquisition by Softbank, will it speed up Sprint's LTE deployment?
SoftBank revealed Monday that it will make a massive investment in Sprint. Most of the money, $12.1 billion, will be distributed to Sprint shareholders, and $8 billion will be new capital that will go toward the strengthening of Sprint's balance sheet.So they get $20 bill and will not spend a single penny on infrastructure. $20 bil and they could outbid Verizon and at&t during the spectrum auctions. Or at the very least make the cost of that spectrum for at&t and Verizon much more expensive. This is why modern stocks suck. The whole intention of stock is to raise capital to EXPAND the business not just to hand out more money to investors. The money the investors get is supposed to be from increased revenues of said expansion of the business. I actually fully agree with you for once, hehe. |
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| reply to BF69
Interesting thought. I was curious, what happens if Sprint Stock price soars above $7.30 next year when this deal is approved. Hypothetically, let's say the price per share rises to $10.00 by that time, what will Softbank do then? |
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RokHed
join:2000-09-09
Pennsville, NJ Reviews:
 ·Comcast
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Isnt that 12.1B what they are spending to acquire the the stock to put them at 70%? And 8B to their debt? Wont paying down the debt enable them to use the savings of fees and interest on the network? Also since Sprint has been rolling Network Vision upgrades for some time now isnt that already budgeted? Everything I have been reading is saying Sprint is on or ahead of schedule. Are you saying that they should spend more than the 9B or so they already committed to network vision? Am I missing something? |
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BF69Premium
join:2004-07-28
Camden, TN | said by RokHed:Isnt that 12.1B what they are spending to acquire the the stock to put them at 70%? And 8B to their debt? Wont paying down the debt enable them to use the savings of fees and interest on the network? Also since Sprint has been rolling Network Vision upgrades for some time now isnt that already budgeted? Everything I have been reading is saying Sprint is on or ahead of schedule. Are you saying that they should spend more than the 9B or so they already committed to network vision? Am I missing something?
Sprint may everything set for providing 4G to their CURRENT customer their issue is an continues to be lack of coverage in my areas like mine. I don't want them to keep telling fucking awesome their service is then not even offer it in my area. If they want to play with the big boys they need to be nationwide. |
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openbox9Premium
join:2004-01-26
japan
kudos:2 | reply to BF69
Read the terms of the agreement. The split of the money isn't as clean as the PR make it out to be. Beyond that, one company is buying a controlling interest in another company. How exactly do you propose the owners be compensated? Just issue new stock? Pay a premium for existing equity? Ignore the owners and just throw a bunch of capital into the mix (shareholders would never go for this and giving the acquirer 70% of the company)? What about Sprint's debt load? Shouldn't some of that be eased with an infusion of capital? A balanced capital execution plan is important for any business, and simply throwing money at spectrum auctions like drunken sailors shouldn't be the plan. |
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openbox9Premium
join:2004-01-26
japan
kudos:2 | reply to JRod MoonDog
Likely will never happen. Sprint's pps will likely peg at/or around ~$6.20. |
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RokHed
join:2000-09-09
Pennsville, NJ | reply to BF69
Maybe you should consider another carrier if Sprint dosnt work well in your area. ALL carriers have coverage holes. I shop for what works and in my area. Sprint works well and costs much less that the other 2 Big Boys. |
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