It's just a rumor, in fact, it feels more like speculation than anything backed by a reputable source; still, there's a Google / Sprint buzz getting a lot of play this morning. Rich Tehrani is reporting that Google is considering an acquisition of Sprint Nextel in order to grow its mobile business. Of course, Google has long touted the importance it places on
mobile ad revenues, made all the more evident by their recent preparation for the
700MHz auction and the figurehead role Google now plays in the Open Handset Alliance's
Android platform. Sprint, for its part, is already on good terms with Google as a member of the OHA and that
WiMAX mobile services deal which Clearwire just
bailed on. In fact, it's access to that
beleaguered WiMAX network which has the pundits in such a tizzy. While we'd love to see Google in a deal with Apple, Intel, Motorola and others to bring mobile broadband to the masses, we're filing this one under
musings from Neverland until this one can firm up a bit.
[Via
GigaOm]
posted Nov 12th 2007 4:22AM
If that happened I would defect and work for google.
I would switch from T-Mobile to Sprint in a second :)
I hope this doesn't happen. Google has benefitted from staying OUT of hardware. If they bought Sprint/Nextel, I think it will be at the detriment to Android. Otherwise, it would seem like ONE carrier pushing their platform to the others. And, do you think AT&T or Sprint/Nextel would consider adopting VCAST? I don't. And that's the same reason AT&T and Verizon will be reluctant to adopt Android if Google owns Sprint/Nextel - it seems more like succumbing to a competitor than joining an Open Alliance.
Google needs to stay out of the hardware and continue focusing on what they do best. Android has revolutionary type potential... but seriously... don't blow it by splurging on Sprint.
I disagree, and I would like to see Google get into the hardware, and service business. Yes, Android, may take longer to be adopted, and some carriers might not want to use a "Sprint" OS. However, if Google ran Sprint in such a way that it put the customer first, then other carriers would be forced to adopt more friendly policies.
I have Verizon now, and every month they remove features, or charge more for things like text messaging. Verizon is trying to raise prices as much as they can without losing too many subscribers. I really hope that Google would bring some competition to the wireless market, so we can see some price reductions, instead of increases.
You are talking out of your ass. Tell me what features they remove "every month"? And raise the price for text messaging? Yeah AFTER AT&T and Sprint raised them first... a little bit of knowledge will go a long way.
If the Goog bought Sprint, there is nothing saying that Sprint would have to remain focused on selling their own hardware - but could instead open up the US wireless market to the idea of a wireless carrier bering simply a SERVICE provider with HARDWARE coming from any vendor...
Possibly the "New Sprint" could offer a couple of basic models from one of those vendors for those who want to "one-stop-shop," but for anything beyond the basic, pick up the mobile at your favorite retailer, and change 'em at will.
The simplifying of the service contracts and billing might even be enough to reduce costs and end user prices...
If Sprint were to become the unquestioned best priced and best customer service carrier, the others would have to follow just to stay in the market.
Google Sprint could be very interesting.
(Cellular user since 1984...)
I am kind of hoping that Sprint's decline will force them to try something innovative, like, perhaps, being consumer-friendly? Open-source platforms would be pretty good and Google could do a lot of good by burning the path.
Rumors of Sprint getting bought out have been flying around for quite a while. The idea of Google buying Sprint is the best so far and probably the only one I wouldn't terribly mind. Being a long time Sprint customer, Google would be the best match and would likely only improve and expand service I'm already generally content with.
I totally agree with most of the comments above, being supportive of Sprint since 2000. One of the main things though, is that Sprint currently doesn't have a CEO to make that barganing trade, thus loosing the WIMAX deal, which I was so much interested in. And also not to mention the advertising. This would be good news if it actually happened. Sprint can them again dominate the cellular world as they once did before!
I really think that Sprint could benefit so much from such a deal. If anyone can make the wireless business model redefine itself, it is Apple or Google. However, the benefit to Google is a little less obvious. Still, the benefit to Google of spending tons on YouTube is equally hard to decipher to the lowest denominator. I can't think that Google would want Sprint unless it has so grand plan to redefine it in a whole new, unforeseen direction and that will cost some serious coin. However, WIMAX could certainly be seen as that whole new direction and I don't doubt that it could work. After all, those two are insanely great, like that Jobs guy in Cupertino they work with. But, to be global, they'd have to add GSM as well, or make WIMAX cheap enough to deploy it around the world quickly-so that is a big whopping problem, unless they are going with O2 or Vodaphone in Eurpoe (but Voda is VZW here) so that is an issue. Hmmm.. A lot of hurdles. In the end, my guess is that SK from Korea will buy Sprint and make it all Helio-that's my shot in the dark, or they all merge and become Gooleiorint-the leader in wireless innovation.
I think everyone needs to back up a second, put on your 'business hat', and think about the original post...Google to acquire SPRINT for WiMAX - not happening.
I've long thought Google is a real contender for buying Sprint's WiMAX assets (a better alternative than the 700MHz). However, Google should only acquire SPRINT if: 1) Google wanted to be a carrier or 2) Sprint was unwilling to part with WiMAX (you can acquire assets without acquiring the entire company). However, Sprint would be very short-sighted if they threw away WiMAX given its cost advantages. Likewise, even Google in their stong position would have to raise some SERIOUS funding to buy Sprint. We're talking a purchase value of $90B guys!! Even Google doesn't have that kinda cash sitting around and while raising the funding might be possible, they still have to build a network and sink some big money into the company to set it on track.
I don't see Google wanting to be a carrier (as mentioned, they're better off being everyone's friend). Likewise, you don't make a $90B purchase to get $10B of assets and toss the rest.
Guys, Google has a great business model...hire some really smart people, create some really cool websites and tools, own online advertising, run some servers, and sit back and count the cash. Being a wireless carrier...operating stores, customer service, mass media advertising, running/maintaining/expanding a network is a MUCH different ballgame. That's why Sprint's stock is $16 and Google's is $660. Think about it.
That's a really fair assertion and I thought the same thing. So, it's more likely that British Telco or SK/Helio (who has a vested interest in Sprint's speed and the wimax possibilities) have got to be ahead of Sprint in the scenario. I think Helio could do a lot if SK wanted to buy them a big whopping Christmas present in Sprint. I think those of us who have Sprint are just looking for someone to restore the luster, the cool phones and the quality that we want. Otherwise, we will all bail with the new pro-rated termination fees.
Tim this is the best response i have heard to such a far fetched rumor. Google like you said is not going to venture and risk capital to acquire wimax hardware or technology. Sprint is possibly in a vulnerable position for takeover, it has not had a positive quarter this year, with that being said maybe a lucrative beneficial mututal company would want to take a run at what Sprint executives cannot seem to do, make me mad money.
Tim this is the best response i have heard to such a far fetched rumor. Google like you said is not going to venture and risk capital to acquire wimax hardware or technology. Sprint is possibly in a vulnerable position for takeover, it has not had a positive quarter this year, with that being said maybe a lucrative beneficial mututal company would want to take a run at what Sprint executives cannot seem to do, make me mad money.