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Sprint to Acquire Nextel in $35 Bil. Deal

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BOSTON Sprint today said it would acquire Nextel in a deal valued at $35 billion, creating the world's third-largest wireless phone provider behind Cingular and Verizon.

The resulting company would be called Sprint Nextel and tally about $40 billion in total yearly revenue and 35 million wireless subscribers.

Sprint chairman and CEO Gary Forsee would become president and CEO of the new entity; Timothy Donahue, his counterpart at Nextel, would become chairman, the companies said.

Nextel in Reston, Va., in May 2003 tapped Omnicom Group's TBWA\Chiat\Day in New York for its estimated $150 million ad account. TBWA\C\D a year ago unveiled a broad image campaign for the company tagged "Nextel. Done."

Sprint in Overland Park, Kan., uses Publicis Groupe's Publicis & Hal Riney in San Francisco as its lead agency, spending $800 million last year on paid media.