Skip to: Content
Skip to: Site Navigation
Skip to: Search

May 17, 2008 1:36:21 AM CDT

Learn about Newser Points »

Back to the grid

Sprint in Talks to Sell Struggling Nextel Unit  

Posted May 6, 08 8:03 AM CDT in Business    Editor's Choice

(newser) – Sprint is considering selling or spinning off its Nextel division, signaling the end of a troubled, disappointing merger, the Wall Street Journal reports. Talks are already under way with Nextel founder Morgan O'Brien, who would integrate the unit into his new wireless public-safety network, and other prospective buyers, including private-equity firms.

One industry vet said Nextel’s worth has shrunk to $5billion-$16 billion, a fraction of the $35 billion Sprint paid in 2005 to acquire the unit. The marriage has been rocky from the start; Sprint and Nextel management styles didn’t mix, and Sprint didn’t invest in upgrading Nextel’s network. Nextel phones also fell behind, looking stodgy beside sleeker offerings from other carriers.

Source Wall Street Journal

open commentscomments (0)

Editor Recommended

Deutsche Telecom mulling Sprint Nextel buy
Information Week | May 5, 08

Sprint shares surge on M&A play
Reuters | May 5, 08

Why Sprint should ditch Nextel
CNET | May 5, 08

Related News

  • Sprint Plans Major Asset Write-Off

    Feb 1, 08 12:27 PM CST
    Sprint Plans Major Asset Write-Off Sprint Nextel says it may write off up to $31 billion related to the merger that created the combined company. The move comes just after a regime change at the company, which has struggled since the 2005 merger, and lost about 1 million customers last year. The write-off, accounting for most or all of the “goodwill” from the merger, will probably mean a big Q4 loss, reports the Washington Post. More »

Sprint in Talks to Sell Struggling Nextel Unit
Various models of phones are displayed on a computer screen as a customer is helped at a Sprint store in Murray, Utah, in this Feb. 28, 2007 file photo.   (AP Photo/Douglas C. Pizac, file)
Sprint in Talks to Sell Struggling Nextel Unit
A Feb. 28, 2008 file photo shows the Sprint sign over a Sprint store in Los Angeles Thursday, Feb. 28, 2008.   (AP Photo/Reed Saxon, File)
Sprint in Talks to Sell Struggling Nextel Unit
A Feb. 28, 2008 file photo shows a Sprint store in Los Angeles.   (AP Photo/Reed Saxon, File )
prev   next
play

Threads (1 of 2)

Tags

mergers and acquisitions  • Sprint Nextel  • telecom industry  • Sprint  • wireless industry  • Nextel


Loading...

Loading...

Related Threads: Telecommunications, Mergers & Acquisitions

Next story from this section »

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »