Today Sprint-Nextel announced plans to sell nearly all of its cellphone towers to a firm called TowerCo. Such a move will help generate extra cash that may help Sprint recover from its recent financial struggles.
The number of towers is near 3300 and will leave Sprint owning a rather small number of towers. This deal will generate around $670 million in cash.
Sprint will still be using the towers, as TowerCo will lease out use of these towers to carriers.
It is a nice attempt for Sprint to work toward paying off debt, however the debt in question is around $24 billion. Sure, $700 million or so will start them on the right path, but Sprint has a long way to go.
But, according to the WSJ article, Sprint is mulling a potential sale or spinoff of its Nextel unit. The carrier has begun to look around for would-be buyers. A sale of Nextel may be a great way to get out of debt and get a large monkey off Sprint’s back.
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