NEW YORK (TheStreet) -- Sprint's
(S) $32 billion offer for rival wireless carrier T-Mobile
(TMUS) is now off the table. And it has cost CEO Dan Hesse his job.
Hess' inability to get the Federal Communications Commission to agree to the merger was one of many failed attempts to help Sprint close the gap between itself and market leaders Verizon
(VZ - Get Report) and AT&T
(T - Get Report).
There's no denying that a Sprint/T-Mobile union would have been a force against their larger competitors. Federal regulators didn't care.
Read More: Tolstoy Derivative; The Right Thing: Jim Cramer's Best Blogs
In statement, Tom Wheeler, chairman of the FCC insisted
, “Four national wireless providers is good for American consumers.”
This was the same reason regulators blocked AT&T's own attempt to pick off T-Mobile back in 2011
. In other words, precedent was already working against Sprint. Now the company needs a new plan. And it won't be easy.
The stock closed Friday at $5.67, down 3.57%, losing roughly 24% for the week. On Monday at 11:30 a.m., shares had bounced 1.4% to $5.75. Sprint has lost more than 46% of its value on the year to date, trailing the telecom sector's 2.66% gain.
Unfortunately for Sprint investors, "trailing" has always been part of this story.
Read More: In the REIT-ification of Everything, a Yieldco Offers Green Profits
Masayoshi Son, CEO of Sprint’s parent company Softbank
, wants to change that narrative
. After buying Sprint last year, the Japanese billionaire now has a U.S. footprint. But Son is not content with last place
To that end, he's bringing in Marcelo Claure, founder and CEO of wireless distribution company Brightstar
. Claure takes over as Sprint CEO beginning Monday, Aug. 11. His first course of action should be to get the company's chin off the ground.
He can do this by focusing on the company's strengths and weaknesses.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts