In a process that has taken eight months now, it looks like SoftBank is going to succeed in its attempt to acquire Sprint (NYSE:S), and that Sprint is going to succeed in its attempt to acquire the remainder of Clearwire (Nasdaq: CLWR). The fly in both ointments, Dish Networks (Nasdaq:DISH)
has apparently abandoned its efforts to acquire Sprint, and likewise
appears to be unwilling to try to once again top Sprint's bid for
Clearwire.
This all probably brings this particular chapter to a close, but those
who think the story in U.S. wireless, broadband, and telecom M&A is
over don't know the nature of the parties involved.
Please read more here:
http://www.investopedia.com/stock-analysis/062113/softbanksprintclearwiredish-network-game-musical-chairs-seems-over-s-clwr-dish-dtv.aspx
Showing posts with label Clearwire. Show all posts
Showing posts with label Clearwire. Show all posts
Friday, June 21, 2013
Tuesday, April 16, 2013
Investopedia: DISH Network Makes Another Bid For Mobile
It's hard not to give some credit to DISH Network’s (Nasdaq:DISH)
leadership for realizing that they've taken the satellite TV concept
about as far as they can. Instead, the company has been acknowledging
(for some time now) that the company needed a pretty significant
strategic transformation- one that would allow the company to leverage
its wireless spectrum and compete more directly in the growing mobile
broadband market.
To that end, Monday's bid for Sprint Nextel (NYSE:S) is bold, but not entirely surprising. In fact, I suggested a few months ago that DISH's bid for Clearwire (Nasdaq:CLWR) could be as much about forcing Sprint to the table as any particular desire to own Clearwire. Now the question is whether or not Sprint's board welcomes the overture, and whether Sprint's other bidder, Japan's Softbank, decides to up the ante.
Please continue reading here:
http://www.investopedia.com/stock-analysis/041613/dish-network-makes-another-bid-mobile-dish-s-clwr-vz-vod-t-dtv.aspx
To that end, Monday's bid for Sprint Nextel (NYSE:S) is bold, but not entirely surprising. In fact, I suggested a few months ago that DISH's bid for Clearwire (Nasdaq:CLWR) could be as much about forcing Sprint to the table as any particular desire to own Clearwire. Now the question is whether or not Sprint's board welcomes the overture, and whether Sprint's other bidder, Japan's Softbank, decides to up the ante.
Please continue reading here:
http://www.investopedia.com/stock-analysis/041613/dish-network-makes-another-bid-mobile-dish-s-clwr-vz-vod-t-dtv.aspx
Tuesday, January 15, 2013
Investopedia: Dish Network May Not Be Cheap, But It'll Be Interesting
Like DIRECTV (Nasdaq:DTV), Dish Network (Nasdaq:DISH) must face the difficult reality that pay TV is not only a more competitive market with the entry of AT&T (NYSE:T) and Verizon Wireless (NYSE:VZ). It also must compete with on-demand options offered by a host of services like Hulu and Netflix (Nasdaq:NFLX).
Although the company doesn't look like a tremendous value today, it has
a shrewd and savvy management team that could make things interesting.
Tough Times in Pay TV
For all of Dish Network's potential strategic options (more on this in a moment), the company's core satellite pay TV business has serious challenges. While Dish Network has a solid low-cost platform and offers products such as "Hopper" to its customers, the company has nevertheless been losing subs.
Please read more here:
http://www.investopedia.com/
Tough Times in Pay TV
For all of Dish Network's potential strategic options (more on this in a moment), the company's core satellite pay TV business has serious challenges. While Dish Network has a solid low-cost platform and offers products such as "Hopper" to its customers, the company has nevertheless been losing subs.
Please read more here:
http://www.investopedia.com/
Monday, December 17, 2012
Investopedia: Will A Sub-$3 Bid Get The Deal Done For Sprint?
When word came out last week that Sprint (NYSE:S) had approached Clearwire (Nasdaq:CLWR)
with a $2.90 per share cash bid, the common reaction was that Sprint
would have to do better. Well, Sprint has done better, and the Clearwire
board has unanimously agreed, but I suspect that an extra 7 cents per
share is not going to thrill Clearwire's investors.
Please read more here:
http://www.investopedia.com/
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Friday, December 14, 2012
Investopedia: The Long Awaited Sprint-Clearwire Deal Is Closer Than Ever
Given large ongoing losses and sizable funding needs, most investors have considered it a given that Clearwire (Nasdaq:CLWR) will be acquired. With its approximate 50.5% ownership stake, meaningful high-end spectrum needs and a recent influx of capital from Japan's Softbank, Sprint (NYSE:S)
was seen as the most likely candidate. Now it seems like Sprint is
finally making its move, but the market reaction and relative valuation
suggest Sprint may have some work left to do.
Please continue reading here:
http://www.investopedia.com/
Please continue reading here:
http://www.investopedia.com/
Tuesday, October 16, 2012
Investopedia: The Softbank-Sprint Tie-Up Seems Like Only The Beginning
Sprint Nextel (NYSE:S)
has always seemed to be uncommonly controversial for a carrier. Not
only has the company had its ups and downs with mergers and
acquisitions, but the Street has never seemed entirely comfortable with
the its plans vis-a-vis Clearwire (Nasdaq:CLWR).
Even now, after the company has reached an agreement to sell a
controlling stake to Japan's SoftBank, it doesn't look like there's any
imminent end to the controversy and uncertainty.
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Please continue here:
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Monday, March 26, 2012
Investopedia: Can Powerwave Live To Fight Another Day?
Deep turnarounds can deliver major multi-bag returns to daring investors, but the reality is that many of these stories spiral down instead of turn around. Powerwave Technologies (Nasdaq:PWAV) is certainly in deep trouble; not only has carrier spending dropped significantly in recent quarters, but the company is facing competition from commodity RF amplifiers. While the potential returns from a Powerwave turnaround could indeed be massive, investors have to weigh this against the real possibility that Powerwave cannot turn itself around fast enough to overcome its debt.
Follow the Trend
Companies like Alcatel-Lucent (NYSE:ALU), Ericsson (Nasdaq:ERIC) and Nokia-Siemens have certainly been hurt by the recent slowdown in carrier spending, but the impact has been even more serious at Powerwave. From $170 million in quarterly revenue for the period ending July 3, 2011, revenue has plunged to $60 million.
Continue here:
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Follow the Trend
Companies like Alcatel-Lucent (NYSE:ALU), Ericsson (Nasdaq:ERIC) and Nokia-Siemens have certainly been hurt by the recent slowdown in carrier spending, but the impact has been even more serious at Powerwave. From $170 million in quarterly revenue for the period ending July 3, 2011, revenue has plunged to $60 million.
Continue here:
http://stocks.investopedia.
Wednesday, December 21, 2011
Investopedia: AT&T's Bold Bid For T-Mobile Ends In Failure
Maybe there's some truth to the aphorism "nothing ventured, nothing gained", but AT&T (NYSE:T) has come up snake-eyes on its latest roll of the dice. In what had become not much of a surprise at all, AT&T announced Monday evening that it was abandoning its bid to acquire Deutsche Telekom AG's (OTCBB:DTEGY) U.S. operator T-Mobile because of what increasingly looked like insurmountable regulatory objections.
The News
AT&T is abandoning its bid to combine with T-Mobile and become an even larger player in the U.S. mobile services market. This outcome is not all that surprising. Apart from the howls of self-interested parties like Sprint (NYSE:S), ample regulatory objections and blockades were raised to this deal. There's no doubt that it would have represented considerable consolidation (blending the No.2 and No.4 providers), though T-Mobile's position as something of a weak sister in the industry may have led AT&T to believe it could get the deal done. (For related reading, see How To Pick The Best Telecom Stocks.)
Read the full piece here:
http://stocks.investopedia.
The News
AT&T is abandoning its bid to combine with T-Mobile and become an even larger player in the U.S. mobile services market. This outcome is not all that surprising. Apart from the howls of self-interested parties like Sprint (NYSE:S), ample regulatory objections and blockades were raised to this deal. There's no doubt that it would have represented considerable consolidation (blending the No.2 and No.4 providers), though T-Mobile's position as something of a weak sister in the industry may have led AT&T to believe it could get the deal done. (For related reading, see How To Pick The Best Telecom Stocks.)
Read the full piece here:
http://stocks.investopedia.
Thursday, October 20, 2011
Seeking Alpha: Powerwave May Fade To Black
Wireless equipment maker Powerwave (PWAV) has given its investors quite the thrill ride over the last four years, but the latest dive may have investors and analysts wondering if this company can ever achieve a sustainable base of business. Bad quarters happen to every company eventually, but very few established companies miss their revenue target by 50% and investors should ask themselves whether the sizable return potential here is still worth the ongoing risk and volatility.
A Terrible Third Quarter
After the close Tuesday, Powerwave announced that it was going to report a horrible third quarter result. Citing significant slowdowns at AT&T (T) and T-Mobile and disruptions in the Mideast and North Africa tied to the political upheavals, management announced that revenue would come between $75 million and $79 million – more than 50% shy of the average analyst estimate of $168 million.
Read the full piece here:
Powerwave May Be About To Fade To Black
A Terrible Third Quarter
After the close Tuesday, Powerwave announced that it was going to report a horrible third quarter result. Citing significant slowdowns at AT&T (T) and T-Mobile and disruptions in the Mideast and North Africa tied to the political upheavals, management announced that revenue would come between $75 million and $79 million – more than 50% shy of the average analyst estimate of $168 million.
Read the full piece here:
Powerwave May Be About To Fade To Black
Friday, October 14, 2011
Investopedia: Sprint Garrotes Clearwire
If there were anything approaching justice in the business world, Sprint (NYSE:S) and Clearwire (Nasdaq:CLWR) would be forced to stay joined at each other's hip, forever. If an investor wants to see two case studies in how companies can completely screw up a potentially lucrative wireless business, these are the companies to seek out. Now with both companies deep in a hole, Sprint has decided to bring out an ever bigger shovel, but this may ultimately be the shovel that buries Clearwire.
We'll Go Our Own Way
Sprint and Clearwire have worked together for quite some time, with Clearwire basically serving as the 4G network for Sprint. Unfortunately, Clearwire has not done a great job with its rollout. Although the company is rolling in valuable spectrum and was an early-mover in 4G, dead spots in urban areas became an unacceptable problem, and Clearwire's geographic coverage expansion slowed to a crawl. What's more, Clearwire has bickered with its partners over rollout strategies along the way, including Sprint.
Read the full piece here:
http://stocks.investopedia.
We'll Go Our Own Way
Sprint and Clearwire have worked together for quite some time, with Clearwire basically serving as the 4G network for Sprint. Unfortunately, Clearwire has not done a great job with its rollout. Although the company is rolling in valuable spectrum and was an early-mover in 4G, dead spots in urban areas became an unacceptable problem, and Clearwire's geographic coverage expansion slowed to a crawl. What's more, Clearwire has bickered with its partners over rollout strategies along the way, including Sprint.
Read the full piece here:
http://stocks.investopedia.
Thursday, October 13, 2011
Investopedia: Can Sprint Nextel Unlock Value?
By most reasonable standards and projections, Sprint Nextel (NYSE:S) is too cheap. But aside from a bounce out of late 2008, this has been a terrible stock to own for many years, and the glory days when Sprint stock carried a "6" or "7" handle seem long ago indeed. When terrible stock performance and apparent value are paired together, it's often a sign that Wall Street has minimal confidence in management. Although Sprint Nextel management has earned the doubt of any benefit, the company may nonetheless not be getting nearly enough credit for what it may be able to do.
A Bizarre Analyst Meeting
Sprint Nextel recently hosted an analyst meeting, and while these are normally intended to add clarity to a story and allow management to explain its vision, it seems like most investors walked away with a lot of lingering doubts.
It certainly did not help matters that the meeting got testy when analysts really ratcheted up the questions in response to Sprint's announcement that it would be launching its own 4G network, leaving Clearwire (Nasdaq:CLWR) out of it, stopping the sale of Clearwire-compatible devices by the end of 2012.
Read more at this link:
http://stocks.investopedia.
A Bizarre Analyst Meeting
Sprint Nextel recently hosted an analyst meeting, and while these are normally intended to add clarity to a story and allow management to explain its vision, it seems like most investors walked away with a lot of lingering doubts.
It certainly did not help matters that the meeting got testy when analysts really ratcheted up the questions in response to Sprint's announcement that it would be launching its own 4G network, leaving Clearwire (Nasdaq:CLWR) out of it, stopping the sale of Clearwire-compatible devices by the end of 2012.
Read more at this link:
http://stocks.investopedia.
Tuesday, March 22, 2011
Investopedia: AT&T Gives Deutsche Telekom Its Out
German telecom giant Deutsche Telekom (OTC:DTEGY) has been trying for years to figure out a strategy for its U.S. business T-Mobile. That dilemma may be at an end now, as the company has agreed to sell T-Mobile to American rival AT&T (NYSE:T) in a $39 billion deal that combines cash and stock.
Terms of the Deal
In a surprising move, AT&T announced that the two companies had reached an agreement whereby AT&T will pay $25 billion in cash and $14 billion in stock for Deutsche Telekom's T-Mobile subsidiary, the #4 player in the U.S. wireless space with roughly 34 million total subscribers. Interestingly, AT&T will not be taking on any of the debt associated with T-Mobile.
At the stated price, AT&T is paying about 7x T-Mobile's trailing EBITDA - a premium to Sprint Nextel (NYSE:S) and Clearwire (Nasdaq:CLWR) (which has negative EBITDA), but in line with MetroPCS (NYSE:PCS) and Leap Wireless (Nasdaq:LEAP). (For related reading, see A Clear Look At EBITDA,)
The Logic of the Deal
It will probably take a year or more for this deal to close, but if it does AT&T will become the #1 wireless provider in the United States. Not only are those subs valuable to AT&T, but the deal helps addressed some of the company's spectrum needs as well. The deal will also give AT&T certain operating synergies, not only be eliminating duplicate functions and personnel, but also giving the company greater bargaining power with vendors.
Please follow this link for the full piece:
http://stocks.investopedia.
Terms of the Deal
In a surprising move, AT&T announced that the two companies had reached an agreement whereby AT&T will pay $25 billion in cash and $14 billion in stock for Deutsche Telekom's T-Mobile subsidiary, the #4 player in the U.S. wireless space with roughly 34 million total subscribers. Interestingly, AT&T will not be taking on any of the debt associated with T-Mobile.
At the stated price, AT&T is paying about 7x T-Mobile's trailing EBITDA - a premium to Sprint Nextel (NYSE:S) and Clearwire (Nasdaq:CLWR) (which has negative EBITDA), but in line with MetroPCS (NYSE:PCS) and Leap Wireless (Nasdaq:LEAP). (For related reading, see A Clear Look At EBITDA,)
The Logic of the Deal
It will probably take a year or more for this deal to close, but if it does AT&T will become the #1 wireless provider in the United States. Not only are those subs valuable to AT&T, but the deal helps addressed some of the company's spectrum needs as well. The deal will also give AT&T certain operating synergies, not only be eliminating duplicate functions and personnel, but also giving the company greater bargaining power with vendors.
Please follow this link for the full piece:
http://stocks.investopedia.
Friday, December 17, 2010
Hey Clearwire, Sprint May Just Not Be That Into You
What happens if someone pulls out all the stops to throw a legendary party, and then nobody shows up? Or, alternatively, people show up but the host goes bankrupt before the party really gets going? That may encapsulate the preeminent fear about would-be 4G giant Clearwire (Nasdaq:CLWR). The company is burning cash at a prodigious rate, Verizon (NYSE:VZ) and AT&T (NYSE:T) continue to go about their business, and Sprint (NYSE:S) seems outwardly a little more skittish about its unofficial subsidiary.
A $1.3 Billion Debt Top-Off
About two weeks ago, Clearwire closed on a round of financing that brought the company over $1.33 billion in additional debt. Two tranches went out with coupon rates of 12% (though the '15 debt is trading at a yield-to-maturity of about 8.8%), while the third was a convertible with a coupon of 8.25%. Clearly, then, we are not talking about a AAA issuer. As part of its special relationship with the company, Sprint will have the right to participate (buy debt) up to 50%, and so the company may issue more debt (in excess of $700 million) within the next month.
Clearly the company needs the cash. Clearwire's capital expenditures have been averaging over $650 million a quarter lately, but the company had about $1.3 billion in cash and short-term securities on the balance sheet at the end of the September quarter (as well as an inconsequential amount of receivables and long-term investments). With this deal, then, Clearwire has bought more time but this is quite likely not the last time the company will need to raise capital.
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A $1.3 Billion Debt Top-Off
About two weeks ago, Clearwire closed on a round of financing that brought the company over $1.33 billion in additional debt. Two tranches went out with coupon rates of 12% (though the '15 debt is trading at a yield-to-maturity of about 8.8%), while the third was a convertible with a coupon of 8.25%. Clearly, then, we are not talking about a AAA issuer. As part of its special relationship with the company, Sprint will have the right to participate (buy debt) up to 50%, and so the company may issue more debt (in excess of $700 million) within the next month.
Clearly the company needs the cash. Clearwire's capital expenditures have been averaging over $650 million a quarter lately, but the company had about $1.3 billion in cash and short-term securities on the balance sheet at the end of the September quarter (as well as an inconsequential amount of receivables and long-term investments). With this deal, then, Clearwire has bought more time but this is quite likely not the last time the company will need to raise capital.
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Tuesday, December 14, 2010
Ciena's Second Act
Optical networking company Ciena (Nasdaq:CIEN) is, if nothing else, a survivor. Although Ciena is thought of as a classic tech-bubble stock, this one actually did not peak until late in 2000 - well after the peaks for rivals like Cisco (Nasdaq:CSCO), Alcatel-Lucent (NYSE:ALU) and the Nasdaq in general. Like Alcatel though, Ciena fell hard and fast as its customers dramatically over-spent on equipment and many went out of business. What remains to be seen is whether Ciena has the ability to produce a second act of profitability and growth.
A Typical Tech Quarter ... More or Less
Ciena's quarter was not all that different from many others in the tech space. Revenue growth on an annual basis looked very strong (up 137%), while sequential growth was more moderate (up 7%). More specific to Ciena, the company's organic business was rather soft, and growth was really driven by the MEN business acquired a little while ago from Nortel.
Profitability was a mixed bag. Although analysts seem relatively pleased with the company's gross margin, the company nevertheless saw this profitability metric drop on both an annual (down 120 basis points) and sequential (down 150 basis points) basis. As for operating income, there wasn't any - the company had an operating loss this quarter, last quarter and in the year-ago quarter.
One point of note is the company's SG&A spending for the quarter. On one hand, this is a company that pays salespeople for orders and the jump in sales/marketing spending could be seen as a sign of more revenue on the way. On the other hand, "general and administrative" expenses basically tripled from the year-ago level, so it may be that the company is just spending more overall. (For more, see Fundamental Analysis: The Income Statement.)
Please follow the link for the full piece:
http://stocks.investopedia.
A Typical Tech Quarter ... More or Less
Ciena's quarter was not all that different from many others in the tech space. Revenue growth on an annual basis looked very strong (up 137%), while sequential growth was more moderate (up 7%). More specific to Ciena, the company's organic business was rather soft, and growth was really driven by the MEN business acquired a little while ago from Nortel.
Profitability was a mixed bag. Although analysts seem relatively pleased with the company's gross margin, the company nevertheless saw this profitability metric drop on both an annual (down 120 basis points) and sequential (down 150 basis points) basis. As for operating income, there wasn't any - the company had an operating loss this quarter, last quarter and in the year-ago quarter.
One point of note is the company's SG&A spending for the quarter. On one hand, this is a company that pays salespeople for orders and the jump in sales/marketing spending could be seen as a sign of more revenue on the way. On the other hand, "general and administrative" expenses basically tripled from the year-ago level, so it may be that the company is just spending more overall. (For more, see Fundamental Analysis: The Income Statement.)
Please follow the link for the full piece:
http://stocks.investopedia.
Tuesday, October 26, 2010
Is Carlyle Looking At The Next Fiber Gold Rush?
Private equity has certainly been waking up to tech lately (including the recent discussions about disk drive maker Seagate (NYSE:SGX), so perhaps Carlyle's interest in cable and wireless equipment maker CommScope (NYSE:CTV) is nothing more than an opportunistic deal. Thinking about the bigger picture, maybe Carlyle is looking for a second gold rush in the cable and fiber markets.
The Deal That Might Be
At this point there is no official deal, but CommScope has confirmed that there are discussions. According to a Bloomberg report, Carlyle would possibly offer $31.50 per share in cash - a deal that would be a decent one-third premium to CommScope's closing price on Friday. Interestingly enough, though, not only is that price not all that rich on a valuation basis, but it does not even match the company's 52-week high. (For related reading, check out Private Equity A Trendsetter For Stocks.)
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http://stocks.investopedia.
The Deal That Might Be
At this point there is no official deal, but CommScope has confirmed that there are discussions. According to a Bloomberg report, Carlyle would possibly offer $31.50 per share in cash - a deal that would be a decent one-third premium to CommScope's closing price on Friday. Interestingly enough, though, not only is that price not all that rich on a valuation basis, but it does not even match the company's 52-week high. (For related reading, check out Private Equity A Trendsetter For Stocks.)
Please click below to continue to the full piece:
http://stocks.investopedia.
Saturday, August 7, 2010
American Tower - Great Business At A Bad Price
The Quarter That Was
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