Report: Sprint is actively working on financing for T-Mobile bid
According to those in the know, the plan is for Sprint to make a cash bid for the 67% of T-Mobile owned by Deutsche Telekom. Sprint and T-Mobile would then combine. Deutsche Telekom would be more than happy to rid itself of T-Mobile despite the carrier's recent innovations that helped it gain 1 million in new subscribers last quarter. Still, Son has yet to sit down with the German mobile operator to discuss a deal.
Insiders say that the SoftBank CEO is concerned about having to pay a break-up free. This is part of every deal and when the AT&T-T-Mobile deal fell apart because of regulators' failure to approve it, AT&T was forced to give its target $7 billion in case and assets. Son says that a large break-up fee is impossible here because of the debt that SoftBank is already carrying.
Sprint isn't the only company interested in T-Mobile. Just a couple of days ago, we reported on a rumor that has DISH Network interested in T-Mobile. This could lead to a rematch between SoftBank and Sprint. This past summer, Son's company beat out DISH Chairman Charles Ergen to buy 78% of Sprint. DISH had offered more money for all of Sprint, but that bid was not financed while SoftBank already had the money to close its deal.
1. PapaSmurf (Posts: 9809; Member since: 14 May 2012)
Leave T-Mobile alone. T-Mobile should buy the spectrum from Verizon to help further it's coverage and remain an independent carrier.
2. Blazers (Posts: 320; Member since: 05 Dec 2011)
Leave them alone? This isn't a hostile takeover. The parent company wants out, so it's a matter of "when" not "if".
So instead of allowing an American company to buy T-Mobile, they're going to let another foreign company own it (SoftBank will win in the end). This wouldn't have happened during the Bush administration.
5. JEverettnow (Posts: 224; Member since: 11 Mar 2013)
Exactly. People blasted me when I said Deutsche Telekom wanted out despite their recent rise in profits with T-Mobile. T-mobile shook things up and created a much needed competitive environment in the mobile industry, but Deutsche has been pretty adamant on relieving themselves of T-Mobile for a long time now. If sprint can do with T-Mobile what T-Mobile did with Metro it might end up pretty nice.
14. JGuinan007 (Posts: 654; Member since: 19 May 2011)
A foreign company already owns T-mo their parent company is German
18. PapaSmurf (Posts: 9809; Member since: 14 May 2012)
Not what I was aiming at. I would prefer for Sprint NOT to buyout T-Mobile. DT is overseas, yes I know that, but what T-Mobile is doing right now is changing everything in the wireless industry. Uncarrier 1-3 with UC#4 around the corner just shows T-Mobile isn't playing around anymore.
25. remixfa (Posts: 14255; Member since: 19 Dec 2008)
I think it would be absolutely stupid of DT to sell Tmobile.. and ESPECIALLY to Sprint right now. They are in the process of FINALLY changing the landscape and making the duopoly pay attention to the little guys for the first time.
DT deserves what it gets. They are suffering in europe and finally have a chance of pushing into the duopoly's control in the USA and they just want to sell. They constantly try to sell, no matter what.
9. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
I doubt the transaction could get DOJ approval. This isn't W's administration.
And then there is the debt that would be incurred to fund the purchase. I don't see Softbank lining it up.
11. InspectorGadget80 (Posts: 7030; Member since: 26 Mar 2011)
You're right. What Sprint should do with that money is improve their network not wasting money on buying T Mobile.
3. mcshank (Posts: 47; Member since: 24 Apr 2013)
I say let it happen. If sprint changes to GSM then everything will become better. The Network will be better, the phones available for the consumers will increase to a larger amount. It will work.. if they go only GSM and drop CDMA..
4. Killertech2099 (Posts: 148; Member since: 28 Sep 2013)
That's the thing that i want it to happen but that's a big If. If they carried on the T-mobile plan with sprint's service that would be amazing. I hate cdma, the fact that gsm phones use sims cards is a plus for me. Consumers and sales would rise that's a gaurantee Let's just hope that happes or at least they get more coverage i just hope sprint doesn't mess it up. Now if at&t and tmobile hooked up damn that would be a sight to see
6. dspkblympkbl (Posts: 51; Member since: 23 May 2013)
Sprint ain't going nowhere, they owe too much money...and how's their move lte going, and how much more would it take to move to gsm lte from CDMA lte?
8. downphoenix (Posts: 2741; Member since: 19 Jun 2010)
Im sure they legally cant do that, at least without letting you out of your contract or commitment.
19. izim1 (Posts: 87; Member since: 04 Feb 2013)
Lol dafuq? What's gsm lte or cdma lte? And who gave you a thumbs up? There's two of you??
24. a_merryman (Posts: 749; Member since: 14 Dec 2011)
Maybe...he meant GSM & LTE and CDMA & LTE...otherwise "lol dafuq?! O_o"
27. dspkblympkbl (Posts: 51; Member since: 23 May 2013)
Again, don't know what that dafuq means, surely a google search will enlighten me...but you seem to understand what I was trying to say, so thank you
26. dspkblympkbl (Posts: 51; Member since: 23 May 2013)
What is "dafuq"?
What I mean by gsm lte and CDMA lte is the following; take the iPhone, there's the verizon version and the AT&T version, they are both 4g lte but the have different frequency or bands, that's what I mean...
28. a_merryman (Posts: 749; Member since: 14 Dec 2011)
Actually, the Verizon iPhone is the same as the AT&T and T-Mobile models. The only different model of iPhone in the US is the Sprint model, which has all the same bands of the aforementioned, but includes a couple other bands. It isn't hard to make phones with a ton of bands like that now-a-days (See the Nexus 5 as another great example), its why it wouldn't be too much of an issue to merge the two networks now-a-days.
7. Bigg6987 (Posts: 6; Member since: 18 Aug 2013)
I don't like the idea of a merger. My GF and I both owe Sprint money that we don't intend to pay lol. Who's to say they won't shut off our service with T-Mobile? I think if T-Mobile is bought I'll probably go back to Straight Talk.
10. FakeMatt (Posts: 26; Member since: 02 Aug 2013)
I wonder if Sprint learned anything from Nextel.
12. jroc74 (Posts: 5400; Member since: 30 Dec 2010)
Might as well buy T Mo ..Sprint and T Mo separately... their service kinda sucks. Together they might be able to compete with Verizon's and AT&T's quality.
13. GeekMovement (Posts: 1909; Member since: 09 Sep 2011)
Sprint is supposedly pushing out LTE services in already populated/well connected areas while I'm struggling to connect to their 3G network here in the northwest. I live about 5 mins from the city and lose connection several times a day even inside my house. My family loses connection inside the shopping mall apparently.
I got excited hearing about the possible rumor that T-Mobile might set up some sort of contract termination plan to draw customers. If it comes to be a reality, I'm definitely going to consider switching over even though I prefer contract plans rather than paying full price for phones.
I'm not really sure what to expect if this merge were to happen... would someone like to explain? If it's Sprint changing to GSM, excellent coverage, and contract plans staying with T-Mobile's data plan pricing, I will be jumping with joy, but that's probably like wishing for a pot of gold smashing through the roof into my room.
15. JGuinan007 (Posts: 654; Member since: 19 May 2011)
I still think Comcast should buy T-mobile
16. threeline (Posts: 264; Member since: 11 Sep 2011)
I left sprint for Tmobile and couldn't be happier! I didn't know what real cell service is until I switched to Tmobile. Sprint's service flat out sucks. I went to Switzerland, Germany and France for 10 days using my phone constantly and my bill stayed the same! If sprint buys Tmobile and I will leave because they will ruin everything Tmobile has built.
21. johnbftl (Posts: 264; Member since: 09 Jun 2012)
That international roaming is going away no matter who buys T-Mobile. As soon as Deutsche Telecom is out, that will go away. The only reason it's there is because all those countries fall under the DT conglomerate network umbrella.
17. xtroid2k (Posts: 508; Member since: 11 Jan 2010)
Well we do have to remember when sprint took over nextel, There was a different management team. We shall see how this new management handles this one. If done right. This would be great
20. johnbftl (Posts: 264; Member since: 09 Jun 2012)
Sprint owns more spectrum than all the other carriers. Most is still unused at the moment while they convert to tri-band LTE. If they were to acquire T-Mobile, they would be taking on all of its customers and spectrum, as well as Metro's customers and spectrum. They could easily sell off most, if not all of Metro's spectrum and customers in chunks to bidders and recoup a lot of what is needed to finance the acquisition. They don't need the spectrum, they just need to convert it from iDEN to LTE, which is why the iDEN network went dark earlier this year. Sprint's major pitfalls are they are still recovering from the mistakes of the Nextel merger, they spent way too much on the iPhone, and because they have such low credit standards they have high nonpayment churn which costs them millions in subsidies.
23. Technobri (Posts: 84; Member since: 10 Dec 2012)
I'm getting better 4g lte in Nyc. I mean it constantly stays on 4g now. Sprint is definitely improving