Sprint Corp (S) May Merge With A Cable Company: CEO Marcelo Claure
Sprint Corp (NYSE:S) CEO, Marcelo Claure, believes that the company can become stronger if it is amalgamated with a cable firm. However, he was quick to add that he has not involved in any merger negotiations until now. His comments came on the back of brisk acquisition taking place in the telecommunications, as well as, the cable sector apart from the entry of Altice NV, a European Union company.
Sprint Corp (NYSE:S)’s Claure said that the amalgamation with a cable firm will make it a formidable competitor as the market environment is tough. He said that everyone wants to get into the wireless business, and that puts the company in a good spot. He predicted the industry to be very active in the next few months or few years.
Claure said that the upcoming period would be exciting one due to the consolidation. However, he clarified that the company is not engaged in any conversations for a merger with anyone. Recently, AT&T Inc. (NYSE:T) acquired DIRECTV (NASDAQ:DTV). Similarly, Charter Communications, Inc. (NASDAQ:CHTR) announced that it was acquiring Time Warner Cable Inc (NYSE:TWC). There can be more consolidation news to come in the upcoming months or years.
Cash Burnt In 2Q
Sprint Corp (NYSE:S)’s CEO, Claure, comments come in the wake of the company burning $2.2 billion cash in the second quarter. The company has also been under tremendous pressure to slash expenditures as investors were concerned that the company was spending more to retain and acquire customers. That apart, the company required to establishing its wireless network.
The comments also came on the heels of billionaire investor, Patrick Drahi, evincing interest in acquiring cable companies in the United States. His firm, Altice NV, has already struck a deal to buy Cablevision Systems Corporation (NYSE:CVC), as well as, Suddenlink Communications. Drahi said recently that he was ready to acquire a wireless carrier in the United States some day. Its executives were hoping to provide the subscribers in the Americas a ‘quadruple play’ of television, Internet, and mobile and fixed telecoms. Incidentally, Sprint Corp (NYSE:S)’s Claure indicated that he was aware of the comments.
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