Posted by & filed under Company Analysis, Financial analysis, Growth & Valuation, Industry Analysis.

Description:  Sprint Nextel confirmed on Thursday that it was in talks with Softbank of Japan over a “potential substantial investment.” A deal would give the struggling American cellphone service provider a deep-pocketed backer to help finance its turnaround effort.

Source: NYTimes.com

Date: Oct 11, 2012

Link:  http://dealbook.nytimes.com/2012/10/11/softbank-of-japan-said-to-near-a-deal-for-control-of-sprint/

Questions for Discussions:

  • Explain the reasons for the proposed merger and the criticisms by analysts.
  • What does this report say about the capital investment requirements in this industry?
  • Does Sprint represent a good investment to Softbank?
  • What are the risks for current investors holding the stock?

 

 

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