- A potential resale deal between Sprint (NYSE:S) and Charter (NASDAQ:CHTR) and Comcast (NASDAQ:CMCSA) makes more sense than straightforward M&A, says Pacific Crest.
- Charter and Comcast are in a long-in-the-works setup to offer mobile virtual network operator service by re-selling Verizon airwaves. But that deal limits the economics and scale of what the two cablecos can offer.
- Such a deal with Sprint would help shore up Sprint's network while putting the carrier's underutilized spectrum to work, analyst Brandon Nispel notes.
- It's a big new option for Sprint, says Wells Fargo (NYSE:WFC)'s Jennifer Fritzsche: "Many think that Sprint really had its back against the wall and many thought if T-Mobile were to happen, it would essentially be a take-under,"
- Meanwhile, it's unlikely that Charter and Comcast will take any equity stake in Sprint, CNBC's David Faber says. People familiar with the talks tell him the focus is on getting an MVNO put together.
- Now: S +4.2%; TMUS -3%; T -1.1%; VZ -1.8%; CHTR -1.1%; CMCSA -0.8%.
- Previously: WSJ: Comcast, Charter forming wireless partnership (May. 07 2017)
- Now read: How To Get A 92% Raise Shopping For A New Phone (Company)
Original article