Sprint Enters Into Exclusive Talks With Charter, Comcast On Wireless Deal
June 26 2017 - 9:11PM
Dow Jones News
By Shalini Ramachandran, Ryan Knutson and Dana Mattioli
Sprint Corp. has entered into exclusive talks with Charter
Communications Inc. and Comcast Corp. as the cable companies
explore a deal that could bolster their plans to offer wireless
service, according to people familiar with the matter.
Sprint Chairman Masayoshi Son and the cable firms have entered
into a two-month, exclusive agreement for discussions through late
July, putting merger talks with T-Mobile US Inc. on hold, the
people said.
One arrangement that has been considered is for Charter and
Comcast to invest in improving Sprint's network in exchange for
favorable terms to offer wireless service using the carrier's
network, the people said. Such a deal could involve the companies
taking an equity stake in Sprint, some of the people said. The
cable companies already have such a network-resale agreement with
Verizon Communications Inc., but the Sprint deal could provide much
better terms.
While thought to be the much less likely scenario, the talks
also include the possibility for the cable companies to jointly
acquire Sprint, some of the people said. Sprint has a market value
of $32 billion and $32.6 billion of net debt.
A reseller agreement with Charter and Comcast wouldn't preclude
a subsequent merger between Sprint and T-Mobile, some of the people
said. While Sprint and T-Mobile have remained far apart in their
merger talks, people familiar with the discussions said a merger
between the two companies is not off the table and may still be the
most likely outcome.
Charter and Comcast, the two largest U.S. cable companies by
subscribers, in May agreed to a wireless truce, which barred both
companies from doing a wireless deal without the other's blessing
or participation for a year.
John Malone, whose Liberty Broadband Corp. is Charter's largest
investor, has been trying to convince Comcast Chief Executive Brian
Roberts for the past year that the companies should jointly buy a
carrier like Sprint, according to people familiar with the
matter.
So far, Mr. Roberts has been reluctant. His goal is to secure a
better reseller agreement as Comcast jumps into the wireless
business, according to a person familiar with his thinking.
Write to Shalini Ramachandran at shalini.ramachandran@wsj.com,
Ryan Knutson at ryan.knutson@wsj.com and Dana Mattioli at
dana.mattioli@wsj.com
(END) Dow Jones Newswires
June 26, 2017 20:56 ET (00:56 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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