Sprint $8 Billion War Chest Threatens AT&T-Verizon Reign

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The deal with SoftBank gives Sprint Chief Executive Officer Dan Hesse the firepower to bring renewed competition to the U.S. mobile- phone industry, creating benefits for consumers and challenges for AT&T and Verizon Wireless. SoftBank will deposit $8 billion into Hesse’s war chest. The money will allow the CEO to improve Sprint’s network, compete for the latest smartphones, reduce debt and potentially make acquisitions. The deal has major risks for both sides. For Softbank, the agreement will mean taking on $19 billion in debt to expand into the U.S. market, where foreign companies have often fared poorly. Its stock plunged the most ever after the deal was made public. For Sprint, it will still have to compete against rivals that are twice as large, with the additional burden of answering to owners 14 time zones ahead.


Sprint $8 Billion War Chest Threatens AT&T-Verizon Reign