NEW YORK (Reuters) – Sprint Corp’s (S.N) wireless partnership with Altice USA (ATUS.N) was not contingent on merger talks with T-Mobile US Inc (TMUS.O) failing, the chief financial officer of the No. 4 U.S. wireless carrier said on Monday.
“It will not deliver the tens of billions in synergies we had foreseen in a merger with T-Mobile,” said Chief Financial Officer Tarek A. Robbiati on a call with Wall Street analysts and reporters. “Nonetheless, it does deliver real value for Sprint and significant value for Sprint.”
Sprint’s shares were down 12.6 percent to $5.82 in early trading on Monday.
Altice said it will sell mobile service on Sprint’s network under a new multi-year agreement announced on Sunday, becoming the latest cable company to enter the wireless market.
The companies announced the agreement a day after Sprint and T-Mobile ended merger talks.
Reporting by Anjali Athavaley; Editing by Chizu Nomiyama