Sprint took on some shine Tuesday after news that it’s in talks with a pair of cable companies, an alternative from years of predictions that it was headed toward a job-robbing merger with rival T-Mobile US.
A Wall Street Journal report on Monday that said Sprint is in exclusive talks with cable giants Comcast and Charter Communications holds out some hope that Sprint has options aside from a merger with T-Mobile, widely seen as a move that would sap jobs from the Overland Park, Kansas, headquarters where 6,000 people work.
If Sprint’s apparent discussions with Comcast and Charter Communications move forward, it’s an indication that Sprint negotiates from more of a position of strength than many thought previously.
Wall Street investors initially greeted the news warmly as Sprint’s share jumped in value by 5.7 percent in early morning trading. Sprint’s shares ended the day with a 2.12 percent increase.
“Sprint isn’t as desperate as many thought, and T-Mobile didn’t have the leverage that most seemed to assume,” analyst Jonathan Chaplin of New Street Research said in a note to clients Tuesday.
Read more: Kansas City Star