Monday, May 4, 2009
The End Game
Although S is on the path to bankruptcy in 2010-11, there are several ways it may go. One investment banker with certain knowledge has revealed the end may come sooner and more quickly than expected. It will become clear S will not be able to make its $3.8 billion 2010 debt payments by Q1 2010. A rival will seek to influence the restructuring so that shareholder may salvage 2-3 dollars per share. First, the debt issues will be consolidated and sold (or at least managed by a third party institutition). They will seek to spin-off the Boost product line, which is launched on the iDEN network, into a separate company, giving existing S shareholders a piece of the pie. What’s left of the CDMA network and it’s customers will be sold to a rival company in exchange for a small discount outstanding debt issues. It’s a win-win for everyone. The Dumb Cowards will get their golden parachutes, which they would lose if S goes to bankruptcy. Shareholders will get something, which is better than nothing, thus eliminating a proxy showdown. The rival will get 25 million customers and network assets, and the debt holders will get their payments. Sprint KC will no longer exist as we know it, but that is inevitable.
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Keep up the good work. I have been with the outfit for 20 plus years. Starting out with SPC Sprint. One thing over the years that sticks out is that every couple of years we get new management, the old leaves with huge bonus money, the new team says we all need to cut costs (to pay for their bonuses) and then they leave. The company seems like it did in the start up days, like we could fold at any time. It is amazing how we seem to always have the wrong product. The Nextel deal is a disaster, any moron could see that. Anyway I thought Dan's message spent a lot of time making excuses. I think he will be leaving with his bonus money early 2010.
ReplyDeleteAs a former Sprint employee who was always eager to promote "elevator speeches" concerning Sprints' overrated products & services, I too was drinking from the Sprint Koolaid. It is a crying shame how much the elitist execs and VP's have brainwashed the employee masses to pump up this poorly managed company. The OPKS croonies have brainwashed the employee base into thinking they should be THANKFUL to work there in that hideous boiler room climate. Wake up employees! Demand more and WALK!!!
ReplyDeleteHey losers...troll chief among you: Sprint exited Q1 with $4.5B of cash and $5.9B of total liquidity different from the medium in which your IB/goldfish/muse dwells, troll) ...explain to me how they can't pay $3.8B by the end of 2010?
ReplyDeleteYou obviously have no grasp of finance (or basic arithmetic), so do us all a favor and stfu.
Hyde
Ok, so check this one out... not sure if it is true, but I surely could see it happen....
ReplyDeletehttp://gigaom.com/2009/05/04/can-outsourcing-its-network-save-sprint/
look at the 6th comment from "Jay"
The best part of that whole deal is that Kathy Walker, Sprint’s ex-Network Chief, is now working for Ericsson and will likely be back in her old job of running their CDMA network….talk about a lack of corporate social responsibility! She got a big severance and then went straight to work for the company that she had been in outsourcing negoatiations with prior to her departure.
Jay — 7:09 AM on May 5, 2009
oh mr. troll....they just don't see it coming, do they.
ReplyDeleteDoes anyone wonder why Elfman and Hesse are on the Clearwire board, and why Elfman still keeps his Seattle home?
Does anyone get it that Boost is a short term smokescreen that just tees up prepaid subs to move to Cricket and Metro (with their evdo/LTE networks)?
Gosh, what about S bragging on an almost 7% churn rate for BOOST in it's highest growth quarter? Not to mention S as a poser due to the lack of a "low cost" structure that can hang with the real prepaid players (they run $10-12 cost per customer...vs XX for S) ....
all that's left is to outsource the sales teams so that the wholesale/dumb CDMA pipe can be left to sell off to high bidders...
yah - Brust loves flying back and forth to his real home at Martha's Vineyard.
hyde - that cash flow statement assumes that revenues don't fall further...and that all those deferred bonuses don't get paid out.
ReplyDeletePicture this:
iPhone Mini announces/launches two weeks after Pre at half the price. Followed by VZ announcement of yet another exclusive cool RIM product.
Kindle adds soften (already happening, Troll?)
Boost sales die as exec's realize they've sold their souls for their highest churn/lowest loyalty product.....
layer over the top with a netowrk maintained by disgruntled network folks with no better options....