Sprint Stock Fell 11% Yesterday after T-Mobile Merger Talks Ended
Sprint stock fell 11%
The stock of telecom (telecommunications) company Sprint (S) fell more than 11% yesterday (Monday, November 6, 2017). The stock had already fallen ~9% on October 30, 2017, bringing the total fall in the last month to ~20%. The 11% fall on Monday came after merger talks with T-Mobile (TMUS) came to a standstill. Peers T-Mobile, Verizon (VZ), and AT&T (T) have generated returns of -11%, -6.7%, and -15%, respectively, in the last month.
Yesterday, Sprint announced a deal with Altice USA in which the two companies will work together to try to realize benefits in the long term. Although the deal will reportedly last multiple years, the exact tenure and terms of the deal weren’t disclosed.
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As part of the contract, Sprint will provide Altice access to its MVNO (mobile virtual network operator) model, which will allow Altice to connect its network to Sprint’s nationwide network. In return, Altice will leverage its network to support Sprint’s network densification program.
According to Sprint’s president and CEO (chief executive officer) Marcelo Claure, “We are incredibly excited to work with Altice USA on this innovative win-win solution that benefits both of our companies. As content and connectivity continue to converge, we believe this approach will be a model for future strategic arrangements across multiple industries including cable, tech and others.”
Increase in Sprint’s volume traded
Sprint saw a significant spike in the number of trades on November 6, 2017. Over 61 million shares were traded yesterday compared to the average volume of 17.4 million shares in the last month.