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:Â 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?
Leave a Reply