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SPRINT AND NEXTEL - A RECIPE FOR SUCCESSFULLY LOSING $30 BILLION IN THREE YEARS
M&A STORIES - The Good, The Bad and The Ugly
English - July 27, 2021 03:00 - 30 minutes - 21.3 MBManagement Business m&a mergers & acquisitions carveout m&a integration finance governance Homepage Download Google Podcasts Overcast Castro Pocket Casts RSS feed
You might have thought that Robert and Toby would have run out of M&A disaster stories by now? Oh, Ye of little faith. THis week we explore Sprint's majority shareholding acquisition of Nextel to try and unpack how a $35 Billion investment in 2005, resulted in a $30 Billion write-off just three years later.
The deal vision made sense and there were significant economies and efficiencies to make the combined business a challenging #3 globally to AT&T and Verizon. Better still, there was significant cross-sell opportunities between Sprint's typical consumer customers and Nextel's B2B customers. Well it made sense on paper BUT:
There's a heck of a lot going on in this particular story and we remain 'Gobsmacked' (that's Rob's descriptive superiority coming through) at how and why this deal should have such a litany of challenges.
To Summarise
So there you have it - yet again, the recipe for how to successfully navigate a $35 Billion investment and turn it into a $30 Billion single write-off in just three years.