Banks willing to lend Sprint $50 billion to buy T-Mobile
Since word leaked out last month that Sprint was considering a bid for T-Mobile, the latter's shares have risen 19% while Sprint's shares rose 7% during the same time period. Keep in mind that both Sprint and T-Mobile are actually owned by larger companies. Japan's SoftBank purchased 78% of Sprint last year in a deal that exceeded $20 billion. The majority of T-Mobile is owned by German telecommunications giant Deutsche Telekom.
AT&T, back in 2011, offered $39 billion for T-Mobile, but later gave up the bid after failing to receive approval from the Justice Department. T-Mobile received $3 billion and spectrum from AT&T as a break-up fee, and this was the genesis of T-Mobile's turn around that saw it add more than 4 million pre-paid subscribers last year.
Losing its independence would be a sad way to end the T-Mobile story. The carrier has become the most innovative in the industry, led by a CEO, John Legere, who puts consumers first. According to a source who has inside knowledge of events, both SoftBank and Deutsche Telekom decided months ago to put Sprint and T-Mobile together, with both considering a deal the best chance they have to compete against Verizon and AT&T. What is holding things up is the decision that has to be made as to the best way to combine the two.
What many U.S. consumers fear is that by merging with Sprint, T-Mobile will lose its identity, and the period of innovation that saw the mobile operator make some lasting changes to the industry, will come to an end.
1. aledelcastle (Posts: 5; Member since: 16 Jan 2014)
Well. I ran away from Sprint and now have T-Mobile. I am very happy with my service... I think I want to stay magenta and not whatever color comes out of yellow and magenta.
2. Jeradiah3 (Posts: 1024; Member since: 11 Feb 2010)
I understand that. I left Sprint for AT&T. Their customer service may be crap, but I love their service. I still dont understand why Tmobile wants to merge with Sprint............unless Tmobile may be the catalyst to Take out Sprint
The way I see it, SoftBank will have to choose which technology to stay with (GSM or CDMA) eventually. If I were them, Id build up Tmobile to where they can compete with AT&T and Verizon while Sprint is forced to either dismantle or change its technology over to GSM therefore creating a larger network for Tmobile. I know that its a stretch, but I dont think that Sprint will stay afloat for long
4. Meccalangelo (Posts: 26; Member since: 05 Mar 2013)
Who said anything about T-mobile wanting to merge with Sprint?
11. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
Who said anything about SoftBank being able to close the acquisition? U.S. DoJ wields veto power. They vetoed AT&T, and they can veto SoftBank.
17. Jeradiah3 (Posts: 1024; Member since: 11 Feb 2010)
They can, but why buy Tmobile when they already have Sprint
6. Topcat488 (Posts: 1348; Member since: 29 Sep 2012)
Well I also hope that T-Mobile has a large roll to play in a merger... This reminds me of the days not to long ago, when Porsche tried to take over Volkswagen... But it turned out Volkswagen buying Porsche! Go T-Mobile, I wish you good luck.
3. Landmarkcm (Posts: 497; Member since: 11 Aug 2009)
Well im just going to say. Ive had Tmobile on & off for years. I always seem to end up back with them. I am currently running my Moto G happily with Tmobile & I am not liking these constant articles lately about stupid Sprint possibly swooping in. I know it's the news for these sites. All I can say is. If they do they had better not undo all the good strides Tmobile has done because they are going to have a lot of upset people on there hands! Sprint is also now the only carrier that here in Vegas has the worst network and still also drops calls horribly. I cannot see them dumping the GSM. Can see NO reason on earth why they would..
5. youlookfoolish (Posts: 161; Member since: 14 Dec 2012)
It is how business works.
If you need/want to attract a buyer, you do all kinds of things to make yourself more attractive to be bought. You cut your losses, increase your customer base. But it is all short term, unsustainable bandaids.
Fact: T-Mobile has the smallest national network foot print.
Fact: T-Mobile has the smallest national customer base of the 4 major carriers.
Fact: T-Mobile is not merging with Sprint. Softbank wants to buy the company because T-Mobile's parent Deutche Telecom wants to sell them. Because they are losing money.
Fan boys who are not getting paid by T-Mobile and jump on message boards to fight over it are laughable.
8. Landmarkcm (Posts: 497; Member since: 11 Aug 2009)
Really still hard for me to fathom though how Sprint is still number 3. When in major cities they still have horrible unusable 3g service! If Tmobile were to keep on the path they are on that could change. They are on an upswing & like I said hopefully Sprint wont ruin that. Im not a "fanboy" just stating the facts. I remember being in Disneyland even & Sprint had no service whereas Tmobile was fine. We all know Sprint has been using that "network vision" line for a couple years now. People are sick of Sprint.
12. g2a5b0e (Posts: 3579; Member since: 08 Jun 2012)
Change happens slowly. They won't be within 2 years max.
14. phonetekmek (Posts: 70; Member since: 04 Oct 2013)
I work in mgmt for a big box and have tmobile att and sprint cell phones as demo lines. I can tell you Sprint has one of the most consitent voice connections and in the areas where they have LTE it is super fast even moving at highway speeds.I drove from Miami to Orlando with consistent LTE streaming music with no buffering at all. In rural areas it isnt close. So sprint didn't work at disneyland? Well for the longest only verizon worked at Disneyworld because they had the only tower, thats how it is sometimes. T-mobile indead has the smallest footprint and indeed is losing money and DT really wants to get rid of it. With banks approving the loan its all up to the US govt. I think it will be good in the long run. People on budgets and with poor credit are the base of both companies. As long as they keep the lower prices and unlimited data options I'm cool.
9. Topcat488 (Posts: 1348; Member since: 29 Sep 2012)
If Sprint merges or buys out right, they had better change their ways of operating... Or I for one, will drop them (T-Sprint) faster then their "Dropped Calls"! Service the people and the people will stay...
7. Killertech2099 (Posts: 148; Member since: 28 Sep 2013)
i wouldnt care if sprint bought tmobile but they better start using gsm phones period
10. techloverNYC (Posts: 601; Member since: 20 Nov 2012)
Please banned this like the AT&T and tmobile trade, if I dnt like at&t why would I choose Sprint thats even wrose
13. sarge77 (Posts: 202; Member since: 14 Mar 2013)
at&t is like t mobile same gsm net sprint is cdma if anything t mobiles carries a wider spectrum that can help both carriers.
15. rockthepojo2004 (Posts: 5; Member since: 29 Jun 2013)
Both t-mobile and sprint are going toward a vo-lte, both use a gsm lte network. If people would do there research into both companies they would know this. Yes, they are two different networks gsm and cdma, but the lte is compatable, just would need to make phone to work on all the network freq! Cant wait to see what the rest of the year brings!
16. lsutigers (Posts: 817; Member since: 08 Mar 2009)
The days of CDMA only phones are almost over. Look at they Nexus 5, it's one model made to work on Sprint, T-Mobile and AT&T that supports all of the carriers voice/3G/LTE bands, including Sprint Spark tri-band LTE. It uses a SIM card as do all new Sprint and Verizon LTE phones which means you can take it to any other carrier when you leave.
18. atlvideoguy (Posts: 52; Member since: 24 Feb 2012)
I don't want this merger to happen. I'm excited seeing all the changes t-mobile's CEO is causing across the board! I also don't see the doj approval for this merger happening.
19. JEverettnow (Posts: 224; Member since: 11 Mar 2013)
Cool, Softbank is trying to buy T-Mobile while Sprint workers just got word of massive layoffs and closures happening. Good luck T-Mobile!