fatalist Posted December 16, 2004 Share Posted December 16, 2004 Sprint, Nextel in $35B merger Wireless company will have about 35 million customers, making it No. 3 in the country. December 15, 2004: 8:39 AM EST NEW YORK (CNN/Money) - Sprint and Nextel announced plans for a $35 billion merger Wednesday, creating a new major wireless phone power with a customer base to challenge its two larger rivals. The companies called the deal a merger of equals, saying shareholders will each own about 50 percent of the new company, which will be called Sprint Nextel. Existing Sprint (Research) shares will remain outstanding and each Nextel (Research) common share will be converted into about 1.28 shares in the new company, as well as 50 cents cash. Using those exchange ratios, the deal represents no premium for Sprint shareholders, who will retain the shares they hold, and about a 9 percent premium for Nextel shareholders, based on Tuesday's closing prices. Shares of Nextel gained 50 cents to $30.49 in pre-market trading on INET Wednesday, while Sprint edged up 5 cents to $25.15 on INET. Compare Mortgage Offers Get up to 4 free mortgage/refinance quotes or home equity loan offers now from 1... www2.nextag.com LendingTree.com - Official Site Lendingtree - Find a mortgage, refinance, home equity or auto loan now. Receive... http://www.lendingtree.com $150,000 Mortgage for $625/mo Get up to four free quotes - no obligation. Pay less on your loan now. http://www.lowermybills.com Find an Online Degree Bachelor, Master, Postgrad degrees or Certificates online from accredited... http://www.classesusa.com "It's a great deal for Sprint. They didn't pay much of a premium for Nextel. I'm not sure how they pulled that off," said Greg Gorbatenko, telecom analyst for Marquis Investment Research. But Gorbatenko said the two companies are not the best of fits with each other, with very different customer bases and business models. "Going forward, we believe that Sprint will have its hands full. The merger is not a puzzle piece fit," he said. "Nextel users may feel a little jilted since the cult-like following is now mass market, losing the push-to-talk (walkie talkie) focus. We will have to be compelled by the new strategy and integration to maintain our current "buy" rating on the Sprint stock." The companies did not give a value of the deal, but using the expected exchange ratio and the Nextel shares outstanding puts the cost to Sprint at about $35 billion. The companies say the value of the combined company is expected to be $70 billion. The companies also say that Sprint's local phone operations will be spun off to shareholders of the new company in a tax-free transaction. Sprint was already the third largest wireless phone company before the deal, but it was a distant third with only about 20.1 million customers, compared to more than 40 million for each of the two largest providers, Verizon Wireless and Cingular. Nextel, with 15.3 million customers, was fifth behind T-Mobile. Sprint and Nextel say they have another 5 million additional subscribers through affiliates and partners, giving the combined company close to 40 million customers. The companies say their customers are worth more than competitors' subscribers, with the highest average revenue per user. That is greatly due to Nextel, which has been a pioneer in the walkie-talkie service on cell phones. Gorbatenko said Sprint's revenue per customer is about $61 a month, just above the industry average, while Nextel's average revenue comes to about $71 a month. Sprint Chairman and CEO Gary Forsee will be president and CEO of the combined company. Nextel CEO and President Timothy Donahue will be chairman of Sprint Nextel. The company's 12-member board will have six from each company. The deal is expected to close in the second half of next year. It is expected to produce operating cost and capital investment savings with a current value of $12 billion, according to the companies. YOUR E-MAIL ALERTS Sprint Nextel Wireless Telephones Mergers and Acquisitions or Create your own Manage alerts | What is this? Those savings include reducing the number of cell sites and switches, reduced combined sales and marketing costs as well as administrative expense. It did not give any estimate for reduction in staff. This is the second major, and second largest, deal in the wireless phone sector this year. In August, Cingular Wireless, a joint venture of SBC (Research) and BellSouth (Research), completed its $41 billion acquisition of AT&T Wireless, a deal that made it the largest wireless provider with 46 million customers. No. 2 Verizon Wireless, a joint venture between Verizon Communications (Research) and Vodafone Group (Research), has about 42 million customers. There were reports Tuesday that Verizon was weighing its own bid for Sprint, but Vodafone came out with a statement saying it would not be involved in such an offer. The Wall Street Journal reported early Wednesday that the deal between Sprint and Nextel would include a $1 billion break-up fee to be paid by any other suitor who stops the deal from taking place. .......that's pretty shitty when 2 companys that have been around forever merge, and are still only NUMBER 3 Quote Link to comment Share on other sites More sharing options...
GucciCondom Posted December 16, 2004 Share Posted December 16, 2004 So does this mean that Nextel won't be such a shitty service anymore? I'm waiting for Verizon to get into the walkie-talkie game before I jump on the Nextel bandwagon and have niggas callin me coppin the 'please hold while the nextel subscriber you are trying to reach is located" every time. Quote Link to comment Share on other sites More sharing options...
rental Posted December 16, 2004 Share Posted December 16, 2004 i think at&t merged with cingular too. Quote Link to comment Share on other sites More sharing options...
Overtime Posted December 16, 2004 Share Posted December 16, 2004 hahha, yeah, i think sprint is shitty, but i have verizon so nothing is affecting me yet...non one mergin or buy my company.... Quote Link to comment Share on other sites More sharing options...
fatalist Posted December 16, 2004 Author Share Posted December 16, 2004 NAH, I GET MORE WITH T-MOBILE Quote Link to comment Share on other sites More sharing options...
alcohol swab Posted December 16, 2004 Share Posted December 16, 2004 tmoblie sucks.fuck them.they said i owed $65 dollars for text messaging when i never even used it Quote Link to comment Share on other sites More sharing options...
GucciCondom Posted December 16, 2004 Share Posted December 16, 2004 Yeah these companies are shady, somehow for 2 months in a row I went over my minutes and had a $300 phone bill. I fucking use my phone just the same every month before that and after that and never got it in the past or since then. Somewhere I read that people could like get viruses into your phone from downloading shit to them and leach off your service. Quote Link to comment Share on other sites More sharing options...
fatalist Posted December 16, 2004 Author Share Posted December 16, 2004 Originally posted by GucciCondom@Dec 16 2004, 03:27 AM Yeah these companies are shady, somehow for 2 months in a row I went over my minutes and had a $300 phone bill. I fucking use my phone just the same every month before that and after that and never got it in the past or since then. Somewhere I read that people could like get viruses into your phone from downloading shit to them and leach off your service. Quoted post WORD...THAT'S SHIT IS EERIE Quote Link to comment Share on other sites More sharing options...
WitE TrAsH Posted December 16, 2004 Share Posted December 16, 2004 Originally posted by GucciCondom@Dec 15 2004, 10:05 PM 'please hold while the nextel subscriber you are trying to reach is located" Quoted post This is the summary of Nextel right here, shit.... Quote Link to comment Share on other sites More sharing options...
GLIK$ Posted December 16, 2004 Share Posted December 16, 2004 I heard that if youre a current Nextel subscriber that you now need to purchase a new phone after this. Is this fucking correct? If so, Im flipping shit thanks to just purchasing a $300+ phone. Quote Link to comment Share on other sites More sharing options...
villain Posted December 16, 2004 Share Posted December 16, 2004 Oh yeah more cell phones means more phone phreaking. You could always encrypt your shit. I'm checking out these VoIP services before they get burned at the stake. Quote Link to comment Share on other sites More sharing options...
GLIK$ Posted December 16, 2004 Share Posted December 16, 2004 ...and all the bad Nextel service? I dont know where you live but in the entire NYC area and including all of southern Westchester I get perfect service. Even when going upstate Im fine. Quote Link to comment Share on other sites More sharing options...
GucciCondom Posted December 16, 2004 Share Posted December 16, 2004 I don't know, I'm from around Philly and I know atleast 15 people that have a Nextel and atleast 3 out of 5 times I try to call them I get the dreaded message. Maybe PA doesn't have enough towers or something? What pisses me off is that everyone complains about their Nextel but people continue to get them just to be cool. Quote Link to comment Share on other sites More sharing options...
SteveAustin Posted December 16, 2004 Share Posted December 16, 2004 Originally posted by Glik0@Dec 15 2004, 09:36 PM I heard that if youre a current Nextel subscriber that you now need to purchase a new phone after this. Is this fucking correct? If so, Im flipping shit thanks to just purchasing a $300+ phone. Quoted post thats completely fucked if thats the case. I just wanna know when I can get walkie talkie service on my sprint phone. I'm not gonna hold my breath though...I'm gonna go on ahead and get a new phone in the next couple of weeks. Quote Link to comment Share on other sites More sharing options...
SteveAustin Posted December 16, 2004 Share Posted December 16, 2004 oh yeah...I've never really had any problems with Sprint. maybe an occasional black hole close to the hood. Quote Link to comment Share on other sites More sharing options...
Swiffer Jet Posted December 16, 2004 Share Posted December 16, 2004 Yeah, I don't understand why people dislike Sprint so much. I don't have any problems with them. Quote Link to comment Share on other sites More sharing options...
fannypack2 Posted December 16, 2004 Share Posted December 16, 2004 **beepbeep beepbeep** my nextel gets pretty good service Quote Link to comment Share on other sites More sharing options...
GLIK$ Posted December 16, 2004 Share Posted December 16, 2004 the iDen technology that Nextel uses will only be available for corporate users. and sprint's walkie talkie will be used for consumer needs. AKA FUCKING JIPPED. Thankfully none of this will fully happen for another year, which means my contract will be up by then and Verizon here I come! Quote Link to comment Share on other sites More sharing options...
LaCosaNostra Posted December 16, 2004 Share Posted December 16, 2004 Originally posted by GucciCondom@Dec 15 2004, 09:05 PM 'please hold while the nextel subscriber you are trying to reach is located" Quoted post Whenever I try to call trackstand, that always fucking happens/ :hatred: Quote Link to comment Share on other sites More sharing options...
InnerCityRebel Posted December 17, 2004 Share Posted December 17, 2004 i have Sprint for my work and personnal phone.I had Nextel for my work phone before they switched to Sprint.. Nextel's walkie-talkie was awesome and worked great if you got a signal.But it was a bitch to get a signal so my worked switch to sprint.Sprints service was much better but the walkie-talkie feature they have sucks dick.Hopefully they will take the best from both and make them one..It would be the perfect service.. Quote Link to comment Share on other sites More sharing options...
MeNiahhh Posted December 17, 2004 Share Posted December 17, 2004 So does this mean that we'll be able to **beep beep** Sprint peoples? Quote Link to comment Share on other sites More sharing options...
Victor Ward Posted December 17, 2004 Share Posted December 17, 2004 MOTHERFUCK A NEXTEL NIGGER Quote Link to comment Share on other sites More sharing options...
JUDONO? Posted December 17, 2004 Share Posted December 17, 2004 they both fucking suck! fuck chirping me on my nextel. Quote Link to comment Share on other sites More sharing options...
Guest uncle-boy Posted December 17, 2004 Share Posted December 17, 2004 my nextel kicks arse. Quote Link to comment Share on other sites More sharing options...
Herbivore Posted December 17, 2004 Share Posted December 17, 2004 Nextels are the most annoying creation thusfar in human existence. Quote Link to comment Share on other sites More sharing options...
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