It was as of 2005 that for about 30 billion USD the not so sustained merger of the technology giants Sprint and Nextel took place. Ever since the collaboration of the two various obstacles and criticism came along the way because of the evident different work integration being exhibited by the two technological giants.
In the year of 2012 sprint witnessed a greater rise in the terms of their market capitalisation and had soar as of about 7 billion USD .Well, the greater hike of these same were then figured out for the widening spectrum holdings of the of sprint which was then ranging over to about 1900/2500 MHz bands. Even with more of the advancements of Sprint being involved in the launching of iPhone in Japan which was seen to be well dominated within no time.
Mismatch of the technological portals
As already stated earlier it was in the year 2005,that Sprint acquired Nextel for worth about 35 billion USD. Sprint from the beginning only wanted to keep in pace with its immediate rivalry AT &T and Verizon. Within three years post the acquisition only Nextel wrote done the value of nearly 80 % citing that the merger was a complete disaster.
The merger of sprint and Nextel was ascertained to be the merger of those non equitable companies coming across to work on a similar platform. But as far as the risk was associated with these firms of equal power and notion things drew drastically different. The two organisation of potent nature differed almost in every relative aspect be in in the form of customers which they capture, brand positioning which they held or even the technology they invested into.as a result of this inbuilt variability the most probable effect was seen in the top management role where the 50-50 distribution of power was being carried out among the two firms.
Rationale of the failed merger
Not just one, but various drop down list of factors attributed together to cite this acquisition failure to be full of distress on to the both side of the organisation. Be it the diverging corporate identities of the two, incompatibilities in the networking road-map of the two. This all certainly led to account for a stumbled pathway for the organisation and eventually extensive loss of revenues was witnessed for the merger.
One of the most plausible reasons for the failed merger of the two organisations is ascertained to be the difference in the working culture of the two which was highly leading to their downfall within the financial look upon.
The clash of the cultures among the two organisations played the most invincible role of all. Even the management was found to be quite aggressive in their undertakings and work. Those major cultural differences among the two organisations indeed paved way to the decline of this acquisition. Even senses of trust malfunctioning issues were also being created among the two firms.
The appropriate cultural integration of the two would have certainly made the things go more of in the directional manner as they were expected to be. Several challenges were also faced as a part of this acquisition including the networking bump which came across the passage of time with these collaborations Also because of the introduction of the; largest 4G networking Sprint posted a loss of about 760 million USD because of the blowing effect of the customer churn.Lack of an appropriate stated goal of the merger also plays the combitorial role in the debacle of the merger. Finally as the subsidiary of soft bank, Sprint decided to spin off the T mobile company of the USA domain.
Negotiations to take off the T Mobile phones of Sprint
A mere negotiation in the pricing strategy of the mobile sets was not sufficient enough to walk over the broad spectrum of the portfolio. Sprint for a comparatively longer period of time extensive suffering for its growth in terms of the T mobiles campaign. The collapsed bid of the combined entity of the organisation eventually suffered the debacle.
While even the hold of the sprint as an organisation remains quite good their decision to get rid of the T Mobile phones has still a lot more of momentum to ascertain with in the near future. The various losses reported by sprint time and again evidently showed as to how the customer disturbance was affecting it to the most of its disastrous value ranging over net losses of 760 million USD
Summing up the acquisition breakdown
The acquisition of Sprint and Nextel could be ascertained as one of the prominent examples to quote about how the amalgamation of two different organisations of different work culture and dissimilar integration interest can lead to crucial the success of organisation and subsequent failure. Had they have given priority to the corporate structuring thing might have works well for them.