NEW YORK (TheStreet) -- AT&T's (T) $85.4 billion acquisition of Time Warner (TWX) had a lot of "strategic rationale" behind it, Sprint (S) - Get Report CEO Marcelo Claure said on CNBC's "Squawk on the Street" Tuesday morning.
"They're right. There's a dramatic shift in the way consumers consume content today. I mean there's so many people who don't even watch TV anymore. They actually consume their content on a mobile phone," he said.
The deal was "a bold move" for AT&T, he noted. "I applaud them for taking that risk."
AT&T most likely made the deal for an additional source of revenue since wireless is so competitive, Claure said. "As you can see, both T-Mobile and ourselves took a lot of customers away from them," he added.
AT&T lost 268,000 mainstream wireless subscribers in the U.S. for the 2016 third quarter.
With AT&T now focusing on Time Warner, Sprint becomes even more attractive to consumers, Claure noted. "What I can tell you is we certainly become a lot more strategic to a lot of people," he said.
Sprint will continue to be "aggressive" about chipping away at AT&T's market share, Claure claimed.
"We plan to continue to take customers away. We were net port positive against all three carriers. So when you have less than 16% market share, there's another 84% of consumers that you can go after," he said.
Before today's opening bell, Sprint reported a loss of 4 cents per share for the 2016 second quarter, missing analysts' expectations of a loss of 7 cents per share. Revenue rose 3.4% year-over-year to $8.25 billion, beating analysts' estimates of $8.05 billion.
Shares of Sprint were plummeting by 7.59% to $6.39 in late morning trading.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Sprint as a Sell with a ratings score of D+. This is driven by multiple weaknesses, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers.
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