Sprint Nextel Corp. posted a $29.5 billion loss and scrapped its dividend after writing down most of the Nextel Communications acquisition from two years ago. Sprint sank as much as 13% in New York trading and its credit-default swaps reached a record. The company reported a fourth quarter net loss of $10.36 a share. Sales fell 5.7% to $9.85 billion, missing analysts' estimates, and the carrier borrowed $2.5 billion under a credit line. The writedown put Nextel's value at 80% less than when it was acquired and the loss is the fifth-largest among S&P500 companies since 1990. Sprint expects 1.2 million subscribers to leave this quarter, as many as it lost in all of 2007. CEO Dan Hesse, who took over in December, said business is deteriorating.
$29.5 billion!! Another useless acquisition by another idiot executive. Perhaps Sprint should concentrate on improving its crappy customer service (yes, I will probably be one of the 1.2 million who leaves this quarter when my contract expires).
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