// startup autopsy
Sprint Nextel
A $35 billion merger that destroyed more value than it created
acquisition gone wrongSlow Death
Years-long decline before final shutdown · Fatal mistake: The $35B acquisition of Nextel in 2005 saddled Sprint with incompatible iDEN network technology and insurmountable debt that prevented meaningful investment in network upgrades.
Key Events Timeline
FOUNDING
Sprint PCS separates as an independent entity, establishing its nationwide wireless network operations.
ACQUISITION ATTEMPT
Sprint completes $35B acquisition of Nextel Communications, creating Sprint Nextel. Network incompatibility issues emerge immediately.
CEO CHANGE
Dan Hesse replaces Gary Forsee as CEO amid record subscriber losses and a $29.7B goodwill write-down from the Nextel merger.
FUNDING
SoftBank acquires 72% of Sprint for $21.6B, injecting capital but signaling Sprint could not survive independently in the US market.
SHUTDOWN
T-Mobile completes $26B acquisition of Sprint. The Sprint brand is retired by August 2020 as T-Mobile integrates network assets and shuts down CDMA infrastructure.