MCI, Sprint Talk Merger

MCI, the nation’s second largest-, and Sprint, the nation’s third largest-long-distance carrier, are talking about a merger that would result in a mega long distance company. Though, it’s not a done deal by a long shot.

Sprint is very attractive to MCI Worldcom because along with long distance, Sprint brings a wireless component to the deal. Combined, the company is valued at $73 billion – less than half of MCI’s valuation of $151 billion.

Reports indicate that the new financial structure would trade Sprint stock for a new WorldCom stock. This would allow MCI to keep Sprint’s wireless business separate from the long distance side. Apparently, the still-growing wireless business can wreak havoc on the financials.

Industry observers don’t think regulators will block a merger (combined the companies will represent 30 percent of the industry while AT&T has 60 percent of the marketshare); however, Sprint’s ongoing struggle with it’s Global One partners could. France Telecom SA and Deutsche Telekom AG both hold 10 percent of Sprint and that’s enough to undo the deal.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.