While DT may well have looked at S no doubt what they saw was $40 bil in debt and far less in assets. They still have $30 bil of intangible assets (of questionable value, remember the nxtl write-off) and another $30 bil in property and equipment that's no doubt very overstated. They have maybe $10 bil in cash, receivables and other assets of real value to offset the huge debt. When you buy a company you buy the debt, so if you look at their assets in the context of real value the company is virtually worthless. Nxtl's worth maybe $10 bil, wi-max is crap and their customer base is melting quicker than a snowball in hell. The billion dollar question here is how this dog is selling in the $8's. No one could possibly pay more than $4 a share with this debt in place so although some may look they'll never move until the stk gets well below that price.
It's value (or worth) is based solely on what anyone else (individual or entity) is willing to pay for it. Personally, I don't think that this company is worth much more than about $2B.
Now, if instead you're asking how much did it cost Sprint to acquire those pieces, that's a different story. And those are numbers I'm not certain on. Hopefully someone else can provide that bit of info.
<<i wouldn't think S would want to consolidate CLWR financials. need to check S' voting interest in CLWR. >>
I believe you need to own at least 80% of a subsidiary corporation in order to consolidate the financials. I think Sprint stated in the P.R. announcing the formation of Clearwire that they plan to use the equity method of accounting with respect to Clearwire.
If S's condition gets much worse and deteriorates to the edge of bankruptcy lenders become nervous and will negotiate debt. Long term this could be a plus but for this to happen the stock would likely fall below $3.
"If S's condition gets much worse and deteriorates to the edge of bankruptcy lenders become nervous and will negotiate debt. Long term this could be a plus but for this to happen the stock would likely fall below $3."
breaking news, Sparky, S is probably already negotiating credit terms since they were downgraded to non-investment grade status. "edge of bankruptcy"??? With run-rate free cash flow of $1.7 billion and total debt to ebitda of 2.7x, S is nowhere near the 'edge of bankruptcy.' I suggest you brush up on your credit analysis skills. Let me guess, you're short S shares?