Sprint Nextel Loses $29 Billion

Sprint/Nextel had a $29.2 billion loss in Q1 after writing down most of the purchase of Nextel.

Today, Sprint reported losing more than a million customers last quarter, Nextel actually lost 1.7 million customers...

and said it may sell some assets after its net loss swelled to $505 million.

Sales fell 7.5% as the #3 mobile carrier is firing 4,000 workers, closing 125 or 8% of its outlets,

and discounting wireless phone plans after the stock lost more than half its value in the past year.

S&P lowered Sprint's debt rating to junk on May 1, saying the company could come close to violating its lenders' terms.

Since Dec., Sprint has scrapped their dividend and borrowed $2.5 billion under a credit line.

Hattip To Bloomberg.

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