The grapevine has it that Verizon Wireless is keen to acquire Sprint Nextel, the third largest mobile operator in USA.
The merger may possible since both the companies implement same technology for their wireless services. However, the problem lies in wireless licensing and the duplication in equipment, feels Brian White of Bloggingbuyouts.
At the same time we should not forget Sprint Nextel’s poor show in the first quarter of 2007. The carrier lost US$211 million or $0.07 per share, in contrast to profit of $164 million or $0.05 per share during the first quarter of last year.
The question arises: why Verizon will invest in the loss making company? It seems that Verizon wants to gain a large subscribers’ base of Sprint Nextel, which has now more than 53 million registered customers.
With this acquisition, Verizon Wireless can give tough competition to already established giant AT&T, who enjoys strong dominance in American wireless market.
