Saturday, November 11, 2006

Scratch Earlier Post About Sprint Takeover ... Analysts Casting Doubt

Bank of America analyst, Douglas Shapiro, has expressed skepticism about recent rumors on Wall Street that U.S. cable giant, Comcast, would attempt an acquisition of Sprint Nextel.

Shapiro noted this week that Sprint’s $70 billion enterprise value would make this purchase a risky “bet the enterprise” proposition for Comcast, whose shareholders would almost certainly question such a deal. Furthermore, Comcast’s stock has finally seen some significant upward movement (about 50% YTD) this year, which the company likely won’t want to mess with for the time being.

Mr. Shapiro also points out that it remains to be seen whether adding wireless to a cable company’s existing service bundle would be particularly attractive to customers.

Source: Telecom Industry News

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