supertutti Posted August 13, 2015 Share Posted August 13, 2015 SoftBank Group Corp. has been buying up shares of Sprint Corp., a show of confidence that Sprint’s Japanese parent is a believer in the struggling carrier’s latest turnaround plan. SoftBank said Wednesday it had bought 22.9 million shares at a weighted average price of $3.80, or about $86.9 million. The company didn’t say whether it intends to keep buying more shares, but if it does, it intends to keep its stake below an 85% threshold that would trigger a tender offer, a condition SoftBank agreed to when it bought less than an 80% stake in Sprint in 2013 for $22 billion. The Sprint share purchases add to the $1 billion SoftBank spent last week buying shares of its own company, which it said were undervalued due to doubts about Sprint. The company had to wait until after Sprint reported earnings last week to buy its shares. http://www.wsj.com/articles/softbank-increases-sprint-stake-by-nearly-87-million-1439424844 As a softbank shareholder this is about the last thing I want them to be doing. Small amount, especially compared to the $1b buyback of SoftBank shares. Don't believe there is much more they can buy without triggering the 85% tender offer. Link to comment Share on other sites More sharing options...
no_free_lunch Posted August 13, 2015 Share Posted August 13, 2015 I know, it's not material, just I would rather see them divesting. I sort of bought sftby in spite of sprint. Link to comment Share on other sites More sharing options...
supertutti Posted August 18, 2015 Share Posted August 18, 2015 Up nearly 50% in the past 2 weeks, but other than the shares SoftBank bought back, can't seem to figure out why. Link to comment Share on other sites More sharing options...
muscleman Posted August 18, 2015 Share Posted August 18, 2015 Up nearly 50% in the past 2 weeks, but other than the shares SoftBank bought back, can't seem to figure out why. Mr. Market have moods. :) I recently went to a Sprint store and checked the quotes. Their quote is lower than other stores. Two iphone 6 for two years with unlimited minutes and 2 Gb data would be around 110 per month pre tax. No down payment. I think this is probably what is causing the 500 M lease capex on their book last quarter. When customers sign up, they pay for the phone upfront. This is not a two year contract but a two year agreement, which means I can cancel at anytime I want, and I just need to pay up for the phone. Link to comment Share on other sites More sharing options...
krazeenyc Posted August 18, 2015 Share Posted August 18, 2015 Up nearly 50% in the past 2 weeks, but other than the shares SoftBank bought back, can't seem to figure out why. Mr. Market have moods. :) I recently went to a Sprint store and checked the quotes. Their quote is lower than other stores. Two iphone 6 for two years with unlimited minutes and 2 Gb data would be around 110 per month pre tax. No down payment. I think this is probably what is causing the 500 M lease capex on their book last quarter. When customers sign up, they pay for the phone upfront. This is not a two year contract but a two year agreement, which means I can cancel at anytime I want, and I just need to pay up for the phone. Agree that this is based on the market's mood -- plus the 2 softbank buys. Yes , in the new model you do not own the phone. Sprint does -- they are just leasing it out to you. It's extremely accretive -- relative to what the other carriers are doing. Let's ignore for a second the cost of the actual phone plans. On Verizon when you buy an iPhone 6 16GB on the Edge plan -- you pay $27 per month, but after 2 years -- you OWN your iPHONE -- and can sell it on ebay or whatever for $400+. So as the customer you paid $648 but you now have a $400 asset. On the New Sprint iPHone Plan that allows you to upgrade every year you pay $22 per month for 12 months ($264) -- but you have nothing to show for it. Sprint is likely able to sell that iPhone through Brightstar for $550+, and with their new leasing co -- they essentially are making a nice profit on the phone without even putting the upfront capex for the phone whereas Verizon is putting upfront capex and only breaking even on the phone (of course they charge more for plans). Link to comment Share on other sites More sharing options...
muscleman Posted August 18, 2015 Share Posted August 18, 2015 Up nearly 50% in the past 2 weeks, but other than the shares SoftBank bought back, can't seem to figure out why. Mr. Market have moods. :) I recently went to a Sprint store and checked the quotes. Their quote is lower than other stores. Two iphone 6 for two years with unlimited minutes and 2 Gb data would be around 110 per month pre tax. No down payment. I think this is probably what is causing the 500 M lease capex on their book last quarter. When customers sign up, they pay for the phone upfront. This is not a two year contract but a two year agreement, which means I can cancel at anytime I want, and I just need to pay up for the phone. Agree that this is based on the market's mood -- plus the 2 softbank buys. Yes , in the new model you do not own the phone. Sprint does -- they are just leasing it out to you. It's extremely accretive -- relative to what the other carriers are doing. Let's ignore for a second the cost of the actual phone plans. On Verizon when you buy an iPhone 6 16GB on the Edge plan -- you pay $27 per month, but after 2 years -- you OWN your iPHONE -- and can sell it on ebay or whatever for $400+. So as the customer you paid $648 but you now have a $400 asset. On the New Sprint iPHone Plan that allows you to upgrade every year you pay $22 per month for 12 months ($264) -- but you have nothing to show for it. Sprint is likely able to sell that iPhone through Brightstar for $550+, and with their new leasing co -- they essentially are making a nice profit on the phone without even putting the upfront capex for the phone whereas Verizon is putting upfront capex and only breaking even on the phone (of course they charge more for plans). What? I don't own the phone? Shit..... The Sprint salesman we met last weekend was giving us material wrong information. He first told us that the two phone plan would cost $45 per month. Including the phone cost it would be $85. Then he told me $85 is the two phone plan. Including the phone cost, it would be $110. Then I asked that idiot if I own the phone after two years and he said yes. Holy crap! Didn't expect salesmen to be so deceptive! Has anyone here considered the option to sign up with AT&T, then after one month, cancel the contract and go to Sprint? Sprint has this cut your bill by half promotion. Not sure how economic that is to customers. Link to comment Share on other sites More sharing options...
Picasso Posted August 18, 2015 Share Posted August 18, 2015 Probably not being deceptive, just doesn't understand the program. A lease by its nature is not "rent to own." Link to comment Share on other sites More sharing options...
Jurgis Posted August 18, 2015 Share Posted August 18, 2015 It's also possible that they have both lease and rent-to-own plans with different costs... Link to comment Share on other sites More sharing options...
krazeenyc Posted August 18, 2015 Share Posted August 18, 2015 Up nearly 50% in the past 2 weeks, but other than the shares SoftBank bought back, can't seem to figure out why. Mr. Market have moods. :) I recently went to a Sprint store and checked the quotes. Their quote is lower than other stores. Two iphone 6 for two years with unlimited minutes and 2 Gb data would be around 110 per month pre tax. No down payment. I think this is probably what is causing the 500 M lease capex on their book last quarter. When customers sign up, they pay for the phone upfront. This is not a two year contract but a two year agreement, which means I can cancel at anytime I want, and I just need to pay up for the phone. Agree that this is based on the market's mood -- plus the 2 softbank buys. Yes , in the new model you do not own the phone. Sprint does -- they are just leasing it out to you. It's extremely accretive -- relative to what the other carriers are doing. Let's ignore for a second the cost of the actual phone plans. On Verizon when you buy an iPhone 6 16GB on the Edge plan -- you pay $27 per month, but after 2 years -- you OWN your iPHONE -- and can sell it on ebay or whatever for $400+. So as the customer you paid $648 but you now have a $400 asset. On the New Sprint iPHone Plan that allows you to upgrade every year you pay $22 per month for 12 months ($264) -- but you have nothing to show for it. Sprint is likely able to sell that iPhone through Brightstar for $550+, and with their new leasing co -- they essentially are making a nice profit on the phone without even putting the upfront capex for the phone whereas Verizon is putting upfront capex and only breaking even on the phone (of course they charge more for plans). What? I don't own the phone? Shit..... The Sprint salesman we met last weekend was giving us material wrong information. He first told us that the two phone plan would cost $45 per month. Including the phone cost it would be $85. Then he told me $85 is the two phone plan. Including the phone cost, it would be $110. Then I asked that idiot if I own the phone after two years and he said yes. Holy crap! Didn't expect salesmen to be so deceptive! Has anyone here considered the option to sign up with AT&T, then after one month, cancel the contract and go to Sprint? Sprint has this cut your bill by half promotion. Not sure how economic that is to customers. For now, they offer... Lease plans (where you don't own the phones), as well as pay over time plans (where you DO own the phone), as well as contract discounted phones (they're supposed to phase this out though), and of course paying for the phone upfront. I don't know the specific deal they offered you. I was referring to the iPHONE plans they recently rolled out. Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 17, 2017 Author Share Posted February 17, 2017 SoftBank preparing to approach T-Mobile about Sprint merger: Reuters, citing sources http://www.cnbc.com/2017/02/17/softbank-eyes-sprint-t-mobile-deals.html Link to comment Share on other sites More sharing options...
saltybit Posted July 12, 2017 Share Posted July 12, 2017 http://www.cnbc.com/2017/07/12/the-most-important-infrastructure-project-is-5g-mobile-networks-sprint-ceo-commentary.html Sprint CEO commentary: America’s most important infrastructure project is 5G mobile networks Link to comment Share on other sites More sharing options...
Liberty Posted September 19, 2017 Share Posted September 19, 2017 https://www.bloomberg.com/news/articles/2017-09-19/sprint-t-mobile-are-said-to-agree-on-deal-ownership-structure Working on a merger with T-mobile. Wonder what the impact would be on the towers (AMT, SBAC)... Link to comment Share on other sites More sharing options...
fareastwarriors Posted September 25, 2017 Author Share Posted September 25, 2017 T-Mobile and Sprint stock-for-stock deal to reflect 'at market' price: Sources A combination of the third- and fourth-largest U.S. mobile operators would raise questions about whether regulators would allow it or block it on antitrust grounds. Sprint has been eyeing a deal with T-Mobile or Charter Communications. https://www.cnbc.com/2017/09/25/t-mobile-and-sprint-stock-for-stock-deal-to-reflect-at-market-price-sources.html Link to comment Share on other sites More sharing options...
fareastwarriors Posted October 30, 2017 Author Share Posted October 30, 2017 Sprint's Merger Talks With T-Mobile Are in Peril https://www.bloomberg.com/news/articles/2017-10-30/softbank-to-halt-sprint-merger-talks-with-t-mobile-nikkei-says Link to comment Share on other sites More sharing options...
fareastwarriors Posted April 27, 2018 Author Share Posted April 27, 2018 one more time??? Sprint, T-Mobile set to announce a $26 billion merger, sources say https://www.cnbc.com/2018/04/27/t-mobile-sprint-merger-near-value-at-26-billion.html •T-Mobile, Sprint near merger that could be announced as soon as Sunday •Deal would value Sprint at about $6.50-per-share, its closing price on Friday •A merger would still face a major challenge from U.S. regulators Link to comment Share on other sites More sharing options...
gokou3 Posted April 30, 2018 Share Posted April 30, 2018 T-Mobile and Sprint to Combine, Accelerating 5G Innovation & Increasing Competition https://finance.yahoo.com/news/t-mobile-sprint-combine-accelerating-160000536.html https://allfor5g.com/investors/ https://allfor5g.com/content/uploads/2018/04/CREATING-ROBUST-COMPETITION-IN-THE-5G-ERA.pdf So how does this change the competition dynamics for T-mobile, ATT, VZ, Charter, Comcast, etc? Link to comment Share on other sites More sharing options...
cameronfen Posted October 21, 2019 Share Posted October 21, 2019 I'm not big on merger arbitrage plays, and esp this one I have no idea, but is anyone doing prelinary analysis on this and Tmobile in anticipation of this going through and potentially buying after the fact? Link to comment Share on other sites More sharing options...
Liberty Posted February 11, 2020 Share Posted February 11, 2020 Up almost 69% after hours... https://www.cnbc.com/2020/02/10/sprint-stock-up-40percent-after-report-that-us-district-judge-is-set-to-rule-in-favor-of-its-deal-with-t-mobile.html Link to comment Share on other sites More sharing options...
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