Problems with the theory:

Google hiring is careful, but buying a company means you've suddenly got a bunch of employees whom YOU never hired, and their nature/culture/attitude/fit isn't something you've got any control over.

( if you decide to ditch 1/2 of 'em, how're yeu going to trust the remainder? )

Regulatory BS: Google doesn't have to deal with the spying-requirements of the carriers, right now, and apparently wants to maintain that it doesn't do that sort of thing, much.
Also, end user business costs much more than B2B, which is Google's preferred target.

Integration/merger ALWAYS COSTS much much more than it seemed it should.

Almost everyone who's been through one says "never again", because integration wiped out so much work, for so long.

Why?

I don't see any advantage to Google Shelling out a fortune for a Wireless Phone company that is struggling to maintain it's existing customer base, much less attain any sort of growth. All Google has to do is make the Android phone available to all carriers instead of just one and they will get far more out of that than wasting cash on Sprint. Someone will probably buy them if they keep bleeding subscribers like they are.

No way

This article is likely baseless. Google wants to achieve world-wide adoption of its operating system in handsets given Microsoft does not have a monopoly on smart phones yet.

So the best way to do this is to buy the worst carrier in the USA, pigeon hole itself domestically and run the risk of damaging world-wide adoption of its new OS?

Makes absolutely no sense for Google to buy Sprint.

If Google proceeds with the purchase it would be a very costly mistake

Sprint is known for losing customers, revenue and cash reserves in the United States and has the highest churn among 4 largest mobile phone giants that provide services in the United States. The reputation for horrible customer service is another dubious advantage to be saddled for Google with in case if the company purchases Sprint Corp.

Also another very major reason for Google not to buy Sprint is the fact that CDMA standard is not very popular to put it mildly outside of the United States and being locked into the wireless technology communication standard that is hardly utilized anywhere in the world outside of North America, South Korea and India (where mobile operators actually plan to convert to GSM in the immediate future) makes rather poor strategic business sense. The biggest advantage of CDMA over GSM is superior data and voice encryption security which is hardly an issue for an average consumer as long as their phones do not get cloned and that does not happen either with cdma or gsm.

Google brand which presently is rated one of the most valuable brand in the world can become the subject of dilution and that can and likely will occur should Google take over Sprint.

Probably better off!!

Google buying the Sprint system would be probably be one of the better investments they could make. YouTube is a sinkhole with petty returns just like all the other social networking sites.

If they pull this off, not only will they get an entire high speed data network but also the ability to push high speed mobile to homes, businesses and open architeture phones. Consumers get awesome products and killer prices which is how google started off in the first place. Why else would I want a mobile data connection? Internet, search for locations (with and without gps) and email -- google does it all already and having the infrastructure to push whatever they want is pure gold!

Better off picking up a Sprint with CDMA revA than a crappy EDGE network.

CDMA in the USA

In response to F1's comment. You're absolutely right that Sprint and Verizon's data networks are superior to what AT&T and T-Mobile offer in the United States presently. However, it will not remain the same way. AT&T is constantly expanding the coverage for their HSDPA based 3G network and T-Mobile has more than adequate capital sources and frequencies available to catch up with required improvements in their data network. While AT&T and T-Mobile roll out their new data network Sprint is desperately selling their antennas for the sake of a short term boost in their cash reserves. Also Sprint is quite likely to default on its Bonds obligation. Why would anyone bet on a company like that?

The problem for Google and Sprint merger should that take place is that while Google is a proud USA invention it is not and should not be exclusively USA focused corporation. If Google ties itself to CDMA standard then effectively it is going to shut itself out of European markets which is in terms of revenue potential quite comparable to the American nation. Furthermore, GSM standard also works besides Europe around the world. Also virtually anywhere in Europe there is a very good data coverage and their technology is not compatible with CDMA standard.

From my experience I have noticed that among Americans under 30 years of age GSM providers are heavily favored in that demographic group. And it is not because AT&T offers iphone. The reason is that at least on both coasts in the USA where most people live anyway many younger adults are quite aware that there is more to the world than the USA and want or do travel around the world for either business or pleasure with GSM compatible phones. It would be sad if Google marries itself to Qualcomm's proprietary technology and Sprint that is nearly bankrupt and poor customer service reputation company.