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Sprint looking at write-off of up to $31B

Fri, 02/01/2008 - 8:05am
Mike Robuck

Sprint Nextel said in a regulatory filing yesterday that it may need to write-off all of the $30.7 billion goodwill value from its 2005 purchase of Nextel Communications.

Sprint, the nation’s third-largest provider behind AT&T and Verizon, is looking at write-offs for smaller deals, as well. Sprint had purchased several affiliates as a means to overcome legal disputes that were related to the Nextel deal.

Sprint said in its regulatory filing that it found, in an annual goodwill review, that the mobile unit’s net book value exceeded fair value, according to Reuters.

A spokesman for Sprint said the write-off won’t affect the company’s day-to-day operations, current cash balance or future cash balance.

Sprint recently appointed Dan Hesse as its CEO after former CEO Gary Forsee left the company last year.

In November, Sprint suspended the roll out of more of the Pivot wireless service that was part of a joint venture with ComcastCox CommunicationsTime Warner Cable and Bright House Networks.

More Broadband Direct:

• Microsoft offers $44B for Yahoo 

• U.S. patent court sides with TiVo in Dish Network dispute 

• Sprint looking at write-off of up to $31B 

• Moto considers putting handset biz into play 

• FCC commissioners bash NTIA’s 2007 U.S. broadband report 

• NC TA’s McSlarrow outlines CableCares initiatives in New Orleans 

• Broadband Briefs for 2/01/08

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