Comcast, Time Warner To Fund XohmSprint's project to get additional cash infusion... 09:00AM Wednesday Mar 26 2008 by Karltags: competition · business · wireless · cable · Comcast · RoadRunner CableTipped by tomei  The Wall Street Journal breaks the news this morning that both Comcast and Time Warner Cable are in talks to fund Sprint's Xohm deployment. Combined with a recent cash influx from Google, Intel and Best Buy, Xohm's future fortunes suddenly got a whole lot brighter. Comcast would contribute a billion dollars, with Time Warner Cable and Brighthouse also contributing. In turn, we assume those companies would provide rebranded WiMax service to their broadband customers (though they're not keen to bundle wireless). Talks should be wrapped up quickly: Sprint CEO Dan Hesse is pressing all parties to wrap up discussions in time for the wireless industry's trade show next week in Las Vegas, so Sprint can have something to present to investors. In addition to the $3 billion Sprint and Clearwire are trying to raise now to start rolling out WiMax, they will likely need more to complete a nationwide network. Sprint previously had told Wall Street the venture would cost $5 billion by 2010. Sprint's partnership with the cable industry to provide wireless phone service (brand named "Pivot") hasn't worked particularly well. As we mentioned earlier in the week, Cox appears to be pursuing their own wireless broadband strategy. Once the financing is settled, analysts believe that Sprint will likely announce that Xohm, with Clearwire's help, is being spun off a la Embarq.
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 brandpc
join:2003-08-25
Canton, CT
 ·Sprint Mobile Broa..
| Xohm spinoff Why does everyone seem to think Sprint is going to spin off Xohn? Everyone who seems to claim this has little understanding of how important this technology will be to Sprint -- who has now focused the majority of their business model on wireless. Without a service like Xohm / Wi-Max, this company has nowhere to go. | |
|  | expert007
join:2006-01-10
Buffalo, NY
| Re: Xohm spinoff Everyone tends to believe it because the analysts, most of whom know more than John Q Public, keep saying it over and over. Of course, like anything else, the more Wall Street indicates that they "might" spin it off, they imply to investors that it "should" be spun off. Investors nod their heads in agreement and put pressure on Sprint management to do the "right" thing. | |
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA
 ·DSL EXTREME
·DSL EXTREME
| Why ? Because Sprint is currently debt ridden, and its stock is hovering in the $6/share range, and has no cash to inject, but would suck cash out like a hoover.
A spun off company wouldn't be tied to Sprint's current misfortunes, and investors would be more eager to invest.
Eg. Would you invest in 'Sprint' who's stock is in the toilet, bleeding iDEN customers, just wrote off ~20 billion in debt (and its market cap is $18 billion).
or...
Would you want to invest in a new wireless company that has little ties to old school business, and its only real debt is the value of its wireless spectrum assets and R&D investments.
While Sprint would like to keep Xohm for its potential to turn around the company, I suspect that many investors do not want to dump money into Sprint itself right now.
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Canada = Hollywood North | |
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MattE
Obama '08
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
 ·Corporate Colocation
| Re: Xohm spinoff said by en102 :Why ? Because Sprint is currently debt ridden, and its stock is hovering in the $6/share range, and has no cash to inject, but would suck cash out like a hoover. A spun off company wouldn't be tied to Sprint's current misfortunes, and investors would be more eager to invest. Eg. Would you invest in 'Sprint' who's stock is in the toilet, bleeding iDEN customers, just wrote off ~20 billion in debt (and its market cap is $18 billion). or... Would you want to invest in a new wireless company that has little ties to old school business, and its only real debt is the value of its wireless spectrum assets and R&D investments. While Sprint would like to keep Xohm for its potential to turn around the company, I suspect that many investors do not want to dump money into Sprint itself right now. Actually, yes, now is the time to invest in Sprint, their stock has tanked and is at an all time low. They wrote off the 20 billion that was their cost for the Nextel merger, and they are getting a massive infusion of cash for Xohm. The people who makes a LOT of money in the stock market always BUY when the market is falling. Hell Verizon took a beating when they announced the cost of FiOS and they have rebounded. Sprint will be fine.
My gut tells me there are too many people who want Clearwire/Xohm to succeed. Intel would LOVE for WiMAX to be ubiquitous so all you have to do is buy a Centrino notebook, open it up, connect to the already present WiMAX network, and have it direct you to a webpage where you can sign up for Xohm service. It's brilliant. Intel wins on two front due to the WiMAX chipset embedded in the laptop, plus the tower transmission equipment chips, and Sprint wins because they have a new subscriber.
Sprint is very, very good at network engineering. They made a mistake with the Nextel merger, but at the time it was a good business move. The merger was handled terribly and the two companies never really became one and they have paid the price ($20 billion!). | |
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en102
Canadian, eh?
join:2001-01-26
Valencia, CA
·DSL EXTREME
·DSL EXTREME
| Re: Xohm spinoff I agree for shareholders, that this would be a good time to purchase, (similar to those that purchased Global Crossing in the past). If someone is to purchase them, or at least attempt to purchase, their stock will jump.
For large investment firms, this is a different story.. as its a bit on the risky side.
Also... my mistake - Sprint Nextel is actually listed as 'junk' status, making it more difficult for them to get financing (outside of private investment)
»www.reuters.com/article/companyN···20080228
While I agree that Sprint is typically very good on the cutting edge of services... they're typically not good at delivery to make large profit.
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Canada = Hollywood North | |
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odreian615
join:2006-01-18
Chicago, IL | This is the begining They(Comcast &TWC) will buy Sprint in 09'
/I can bet it | |
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StarFish267
join:2005-11-25
Fort Worth, TX | Re: This is the begining If Google doesn't beat them to the punch like Nov/Dec 2008. | |
| kelso
join:2007-04-06
Ashburn, VA | Was looking forward to Xohm I was looking forward to getting Xohm service.
I love Sprint mobile data and thought Xohm would be good.
But, I will rethink the matter if Comcast gets their paws into the pie.
I don't prefer my data traffic shaped. | |
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jt65
@comcast.net | Re: Was looking forward to Xohm every company does some short of network management. i dont have any issues with the comcast hsi service. it work great. | |
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tc1uscg
join:2005-03-09
Saint Clair Shores, MI
 ·Comcast
·WOW Internet and C..
·VoiceEclipse
| said by kelso :I was looking forward to getting Xohm service. I love Sprint mobile data and thought Xohm would be good. But, I will rethink the matter if Comcast gets their paws into the pie. I don't prefer my data traffic shaped. Comcast is just the one you know about.. Just like the "secret" monitoring of your IP based phone calls, EVERYONE allows it so do you really thing there isn't some "data traffic shapping" going on all over? At least not yet?  Welcome to the party pal.  | |
| bugabuga
join:2004-06-10
Austin, TX | Not "invest" but probably "buy" Given how "well" the wireless service from cable companies is selling (TW uses Sprint for that) I bet there will be another big round of negotiation and these investments will essentially turn out to be a buy-out of Xohm stake. | |
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gaforces
United We Stand, Divided We Fall
join:2002-04-07
Santa Cruz, CA | Access points This could potentially give Xohm more coverage if they play their contracts right.
Make it an open network where partners would share the radios. | |
| flyingjoey
join:2005-11-07
Jersey City, NJ | So now what? I'm tired of waiting... just giving the freaken thing.
Spring is already here, where's my Xohm? | |
| decin2002
Premium
join:2005-11-09
Marblehead, MA | Xohm sold to the Cable Companies? Word on the street this AM is that Sprint's 4G network has been sold (not attracting investors, but sold), and that more big layoffs are coming. Will be interesting to see how this plays out. | |
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StarFish267
join:2005-11-25
Fort Worth, TX
·Charter Pipeline
| Re: Xohm sold to the Cable Companies? Not!
»news.google.com/news?hl=en&tab=w···=&q=xohm
But AT&T sure could buy up a lot of stock, take controlling interest of the company now if they wanted too.
Hmmn, where was the Dan Hesse guy from before he was in the Sprint {Embarq} loop? [Did I see AT&T on his Resume?] | |
| decin2002
Premium
join:2005-11-09
Marblehead, MA | Looks like it was sold this morning...... which would completely cancel your rationale | |
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