Among its other difficulties, Sprint is considering selling or spinning off its Nextel unit, according to a report in The Wall Street Journal. Citing unnamed sources “familiar with the situation,” the Journal says that no deal is pending, but that Nextel’s future has been part of the ongoing discussions about how to return the company to profitability.
Sprint acquired Nextel in 2005 for $35 billion and has struggled since then to integrate the two networks.
The report says that the carrier is considering several options for its Nextel unit, including discussions with Morgan O’Brien, Nextel’s founder and current head of Cyren Call Communications. Cyren Call is trying to help public safety organizations build a nationwide wireless network, and O’Brien is reportedly trying to assemble investors to acquire Nextel, though Cyren Call wouldn’t be one of the buyers. The carrier also is reportedly looking into private equity firms as possible Nextel buyers, or possibly spinning the unit off into a separate company.
The value of Nextel is unclear, but has certainly dropped since the acquisition; analysts estimate the current value to be between $5 billion and $16 billion.