Evercore: Sprint will need to raise another $3B in capital
Nov 30 2014, 13:19 ET | About: Sprint Corporation (S) | By: Eric Jhonsa, SA News Editor [Contact this editor with comments or a news tip]
"We now model [Sprint] having to raise an additional $3B of capital over the next 3+ years to both continue investing in its network and fighting to attract subs," predicts Evercore's Jonathan Schildkraut, reiterating a Sell on Sprint (NYSE:S). "We believe this financing will come as debt given [Sprint's] low stock price and the likelihood that SoftBank (OTCPK:SFTBF) would not want to dilute its holdings."
Schildkraut assumes Sprint will have calendar Q4 free cash flow of -$1.3B, leading to full-year cash burn of $2.95B. He adds Sprint's participation in the FCC's huge 2016 incentive auction (widely considered necessary due to Sprint's relatively weak low-band spectrum portfolio) "could result in the need to raise even more capital.'
As it is, Sprint had $27B in net debt at the end of September (compares with current equity of $20.3B). Aside from price cuts and 4G investments, postpaid subscriber losses (272K were lost in calendar Q3) have been contributing to cash burn.
all the cable company's have been in Bed with Sprint for years. I would be surprised if they bought T-mobile and competed head to head with Sprint. If they wanted to do that they could have done it years ago.
The Point is having the option for WIFI calling improved the T-Mobile Network Experience. Maybe I'm reading your post wrong but it seems your not impressed with the announcement. The biggest issue with all of the major players is in building coverage where most calls are made. Wifi calling helps solve that issue
Go buy Sprint Stock. Good Luck
Yea because Dan has done so much for Sprint and the wireless industry? The only way this deal gets done is if John is CEO of the combined company. When Dan tells the FCC he will continue the competition if allowed to combined he has no credibility. If John tells the FCC the same thing they are more likely to believe him.
Only way this deal gets done in My opinion is if T-Mobile is in control of the combined company. Its the only way I see the FCC and DOJ believing composition will continue. I Personally have little faith in Dan as CEO of the combined company. In My eyes Sprint has been floundering since buying Nextel. Its taking years but the ship is coming back upright. John turned T-Mobile around in 12 months. I'm a Sprint subscriber and have been from the beginning. I still would rather have John run the combined company. In my mind, out of the two CEO's he is the most logical choice
I think the only way it happens is if John Is the CEO of the combined company. If Dan is the CEO it gets blocked. Thats My opinion
they should have took the money from Metro. It would be a different landscape right now if they did. a 5th national carrier, now we are stuck with 4 and possibly 3 the way things are going.
T-mo is HSPA where they don't have LTE. They are rolling out LTE at a fast pace so you might have it in your area. you might just need a new handset
I think AT&T did this themselves. I don't Give Doug that much credit. I think AT&T wanted to be sure they secured LEAP without a T-Mobile biding war. Funny thing is T-Mobile only wanted LEAP at a discount or after bankruptcy.
I think they are buying it to keep it out of the handset of T-mobile. They are overpaying big time for it. I think this was just to avoid a biding war. Don't get me wrong they are getting spectrum and customers out of the deal. It's just funny that leap has been out there for years any no one wanted them but Metro. now AT&T wants them