x We have placed cookies on your device to make your experience better. Find more info here.
x PhoneArena.com наема във Варна! Ако технологиите са в кръвта ти и имаш перфектен писмен английски,
ние ти даваме възможността да станеш част от екипа ни. - виж повече
  • Home
  • News
  • Bloomberg: Sprint – T-Mobile merger approval could take up to a year

Bloomberg: Sprint – T-Mobile merger approval could take up to a year

Posted: , by Luis D.

Tags:

Bloomberg: Sprint – T-Mobile merger approval could take up to a year
As final details around the merging of US carrier Sprint with US un-carrier T-Mobile are being ironed out, Bloomberg reports that Japanese carrier SoftBank (Sprint owner) CEO, Masayoshi Son, is asking banks to commit financing for "a longer-than-usual amount of time", as those involved in the $32b deal expect "a lengthy approval process". According to people in the know, said process could stretch out to a full year after the merger's official announcement. Reportedly, the banks have given Softbank and Deutsche Telekom (T-Mobile owner) 18 months to secure the deal, otherwise they won't provide funding.

If the planned merger fails, regardless of reason, T-Mobile is eligible to receive $1 billion or more in break-up fees. AT&T, which attempted but was not allowed to take over T-Mobile in 2011, has done this exercise already. The merging effort, which was ultimately rejected by the FCC, made a difficult year for AT&T CEO Randal Stephenson, whose total compensation for the year marked an 18.5 drop due to the failed merger and other circumstances.

Masayoshi-sama would like the deal to move a little quicker.

Masayoshi-sama would like the deal to move a little quicker.

However, history doesn't seem to bother Masayoshi Son who's quite intent on acquiring T-Mobile, even though the regulation authorities remain in favor of the current four big competitors status-quo. Both SoftBank and Deutsche Telekom have acknowledged they are ready to take a possible FCC rejection to the court if they have to. But AT&T had the same fighting words before it backed down from a court case later in 2011.

None of the parties involved, such as the carriers themselves, the FCC, and financial behemoths Goldman Sachs, JPMorgan and Deutsche Bank have commented on the rumor at this time.

source: Bloomberg

10 Comments
  • Options
    Close




posted on 15 Jul 2014, 09:29

1. SuperAndroidEvo (Posts: 4313; Member since: 15 Apr 2011)


I am sure it might move a bit more swiftly. Well I hope at least.

posted on 15 Jul 2014, 15:03 2

7. Droid_X_Doug (Posts: 5908; Member since: 22 Dec 2010)


Lawsuits take waaaay more than 18 months to conclude. First there is the dance of death that has to occur to have a basis (claimed injury) for filing a lawsuit. Then there is the lawsuit itself (don't forget time for appeals). Best case is 36 months, which is 2x the 18 month bank line availability period. Realistically, if this goes the lawsuit route, is 60 months. Which is a major reason why AT&T cut their losses and paid the break-up fee.

This is looking dumber and dumber with each passing article.

posted on 15 Jul 2014, 11:01

2. TheMoltenD (Posts: 103; Member since: 13 Jul 2014)


If its approved it will take a lot longer than a year to merge a CDMA network with a GSM one.

posted on 15 Jul 2014, 16:20 1

9. npaladin2000 (Posts: 139; Member since: 06 Nov 2011)


If they have any sense at all they're going to dump all but the AWS and the PCS licenses that they wont have to divest as part of the merger deal. SMR is of limited utility, and BRS is of limited range.

posted on 15 Jul 2014, 11:17 3

3. 0xFFFF (Posts: 3600; Member since: 16 Apr 2014)


A debt-financed disaster in the making. It wouldn't surprise me if ATT/Verizon were secretly helping the process along.

Even if the merger happens, the resulting company will be so weak and helpless that it will fall apart. And ATT/Verizon will be there to pick up the pieces.

posted on 15 Jul 2014, 15:08

8. Droid_X_Doug (Posts: 5908; Member since: 22 Dec 2010)


I would be thinking that AT&T is doing everything they can to egg this disaster along. Nothing like having Sprint weakened even more from a failed acquisition. Sprint is losing customers each day to AT&T, VZW and T-Mo.

posted on 15 Jul 2014, 11:54

4. SupermanayrB (Posts: 203; Member since: 20 Mar 2012)


'...Sprint – T-Mobile merger approval could take up to an year'

Is the Y silent?

posted on 15 Jul 2014, 12:02 1

5. Doakie (Posts: 1303; Member since: 06 May 2009)


No. An Year is just like An Hero.

http://knowyourmeme.com/memes/an-hero

posted on 15 Jul 2014, 12:26

6. ZayZay (Posts: 565; Member since: 26 Feb 2011)


Oh English.

posted on 15 Jul 2014, 20:03 1

10. JunitoNH (Posts: 956; Member since: 15 Feb 2012)


Well, I can understand and appreciate that, they have to figure out which politicians hands they have to grease.

Want to comment? Please login or register.

Latest stories