Sprint Sells off Its Cell Towers But Nothing Will Change..For Now
According to InformationWeek, Sprint Nextel announced Thursday it would be selling 3,300, which are nearly all of its wireless communication towers to TowerCo for $670 million in cash.
But Sprint will lease them back from the new owner, so users do not expect to see any changes. When the deal is closed in 90 days, TowerCo will take over the operating and maintenance of approximately 3,300 towers that use Code-Division Multiple Access (CDMA)and Integrated Digital Enhanced Network technologies. (Iden).
In the business world, this makes perfectly sense to sell the assets to generate cash for further business developments and lease them back as recurring well controlled operating expenses. However, there are strong rumors that the ailing Sprint has been the target of acquisition. This move will make it more cash rich, hence attractive, perhaps?
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