Sprint to Buy Nextel For $35 Billion

Hey Verizon, can you hear US now?

Sprint is nearing an agreement to purchase Nextel in a $35 Billion mostly stock deal. A merger between Sprint and Nextel would combine the #3 and the #5 wireless phone companies. Even though this would gain the merged companies a much larger combined customer base as well as a broader coverage area, there will be many technological problems to overcome as their wireless systems are currently incompatible.

Nextel has mainly catered to the higher end wireless market, including mostly business professionals; whereas Sprint is known for targeting the very broad mass-market consumers such as families, teenagers, etc. Bringing these two companies together seems like a good match when you consider their current target markets. This advantage will most likely outweigh any technical difficulties that they may encounter. The obvious aim of this merger is to create a wireless media giant to take on rivals Cingular Wireless and Verizon Wireless. This will put Sprint/Nextel into a position where they can really increase their grip on the wireless media market.

What does this mean for the consumer?  Many analysts and forecasters are divided on what a merger like this will mean for the industry. Some feel that a combining of strengths will help the two companies overcome their weaknesses leading to better profits, stock prices, and eventually better products for the consumer. Others are sure that reducing the amount of competitors in the wireless phone market leaving only a few mega-corporations to compete will result in higher prices and increased chances of monopoly type strangleholds on the industry. Whatever the outcome, it would seem that there will definitely continue to be some shaking up in the wireless phone industry.

Another one bites the Dust

Kerik ducks out:

Bernard Kerik is the latest victim of political correctness run amuck.  Probably the most qualified nominee to date in the new Bush cabinet is forced to remove his name from nomination, after questions about the immigration status of a house worker came into question, ABC is reporting.  Mr. Kerik was NYPD commish under Mayor Giuliani and was thought to be a shoe-in at Homeland Security.  Too bad for us. The US would have benefitted greatly from such a great hands-on leader.  Kerik, even praised by the likes of Sen. Hillary Clinton, was a popular choice and a good fit.