American Tower and Crown Castle Look to Benefit From Recent Softbank/Sprint Deal
October 18, 2012 08:20 ET
American Tower and Crown Castle Look to Benefit From Recent Softbank/Sprint Deal
Five Star Equities Provides Stock Research on American Tower and Crown Castle
NEW YORK, NY--(Marketwire - Oct 18, 2012) - Japan's third-largest mobile carrier Softbank Corp. on Monday agreed to purchase a 70 percent stake in SprintNextel Corp. for approximately $20 billion. The deal will provide Sprint with a much needed influx of cash and enable them to become a major competitor to industry leaders AT&T and Verizon. Five Star Equities examines the outlook for companies in the Domestic Telecom Industry and provides equity research on American Tower Corp. (
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Once the purchase is complete, by mid-2013, Softbank will become one of the world's largest telecom groups with roughly 90 million subscribers. The merger was the second announced this month as Deutsche Telekom AG owned T-mobile USA agreed to merge with MetroPCS. Analysts have speculated that Clearwire Corp. may be next in line.
Wells Fargo analyst Jennifer Fritzsche wrote in a note that the influx of cash in Sprint's balance sheets "is good for Towers," and that Crown Castle has the most exposure to Sprint. "We expect this additional capital be directed toward a more aggressive in ramping up LTE," she wrote. "Towers should benefit from this additional spend."
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American Tower is a leading independent global owner, operator and developer of wireless communications sites. American Tower currently owns and operates over 49,000 communications sites in the United States and 9 other countries. The company is scheduled to report their third quarter 2012 financial results on October 31, 2012.
Crown Castle owns, operates, and leases towers and other infrastructure for wireless communications. Crown Castle offers significant wireless communications coverage to 92 of the top 100 US markets and to substantially all of the Australian population. The company is scheduled to release its third quarter 2012 financial results on October 24, 2012.
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