Sprint Corp (NYSE:S) stock was down on Monday following news of a deal with Altice USA Inc (NYSE:ATUS).
The deal between the two wireless carriers will have them working together and providing benefits to each other. It will last for multiple years, but the exact amount of time wasn’t disclosed by the companies.
Sprint Corp’s part of the deal will have it giving Altice USA Inc access to its nationwide network. It will also allow the smaller wireless carrier to continue to control its mobile features on that network.
The deal between Sprint Corp and Altice USA Inc will have the latter helping the former with its own network plans. This includes providing S with access to its network to help with the company’s densification efforts. It will also allow it to “establish a differentiated network operating model going forward.”
“We are incredibly excited to work with Altice USA on this innovative win-win solution that benefits both of our companies,” Marcelo Claure, President and CEO of Sprint Corp, said in a statement. “As content and connectivity continue to converge, we believe this approach will be a model for future strategic arrangements across multiple industries including cable, tech and others.”
Sprint Corp’s deal with Altice USA Inc comes after a bit of bad news for the company. Talks between S and T-Mobile US Inc (NASDAQ:TMUS) came to an end just one day before the new deal was announced. The two companies were planning a merger and the end of talks likely didn’t help S stock today.
S stock was down 10% and TMUS stock was down 5% as of noon Monday. ATUS stock was down 4% at this same time.
As of this writing, William White did not hold a position in any of the aforementioned securities.