Thursday, January 31, 2008

Sprint Made a $31 Billion Mistake Buying Nextel

In its most-recent 8K filing with the Securities and Exchange Commission, Sprint Nextel Corp. says it may have to write off the full value of the $31 billion worth of "goodwill" carried on its books as an asset related to the Nextel acquisition. The move will not afect Sprint Nextel's cash balance or future cash flows but will affect the company's statement of assets.

The coming write down essentially means Sprint overpaid $31 billion to acquire Nextel. Blunders of that magnitude often are enough to spell the end of independent life for any corporation that makes such a sizable mistake.

No comments:

It Will be Hard to Measure AI Impact on Knowledge Worker "Productivity"

There are over 100 million knowledge workers in the United States, and more than 1.25 billion knowledge workers globally, according to one A...