Report: Sprint owner SoftBank agrees to move forward with T-Mobile merger

Report: Sprint owner SoftBank agrees to move forward with T-Mobile merger
According to a report from international news agency Agence France-Presse (AFP), the oft-rumored merger between T-Mobile and Sprint is one step closer to being a reality. Japan's SoftBank, which owns 80% of Sprint, has apparantly reached an internal decision to proceed with the deal. SoftBank, and Deutsche Telekom are discussing a stock swap, which is expected to be announced this month. The German phone company owns 64% of T-Mobile.

The AFP says that SoftBank is looking at ways to get the required approvals from the U.S. FCC and the Federal Trade Commission. A previous attempt to put T-Mobile and Sprint together in 2014 failed when the FCC and FTC hinted that such a deal would not get approval even though $50 billion of bank financing was reportedly offered to Sprint to buy T-Mobile.

Almost four years later, there are some big changes when discussing this potential deal. One, T-Mobile would now be the buyer. The carrier has leapfrogged Sprint to become the third largest wireless operator in the states, and is also the most innovative among the major stateside firms. Previous reports concerning a possible deal stated that T-Mobile president and CEO John Legere, easily the most recognizable executive in the industry, will run the combined company.

The merger would allow a third large carrier to compete with number one Verizon, and number two AT&T. In fact, a combined T-Mobile Sprint would have 131 million subscribers which is very close to the 136.5 million wireless subscribers that AT&T had in the second quarter this year. During the same quarter, Verizon had 147.2 million wireless customers.

source: AFP

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41 Comments

1. D.Aceveda

Posts: 432; Member since: Jun 30, 2012

You would think after the merger getting rejected twice(AT&T and Sprint), they'd give it up.

15. threed61

Posts: 259; Member since: May 27, 2011

Those rejections occurred before the election of Dorito Mussolini, whose administration is fine with big mergers.

18. Dr.Phil

Posts: 2357; Member since: Feb 14, 2011

Didn't the Obama administration approve the merger of Charter and Time Warner Cable along with BrightHouse? That deal made them the second largest internet cable provider in the U.S. And we all know that internet prices in the U.S. do not see the same competition that wireless does. In fact, the Obama administration only challenged 150 mergers compared to Bush's 129. Bill Clinton challenged 292 mergers, nearly twice what Obama did. So I don't think big mergers are exclusive to just Republican administrations. Both Democrats and Republicans listen to who gives campaign contributions.

19. threed61

Posts: 259; Member since: May 27, 2011

The Obama administration blocked the 2 mergers referenced by D.Aceveda. Trump and appointees have demonstrated more enthusiasm for mergers as have Republicans in general. Obama took office after the onset of a major recession, there was far less interest in mergers. The Clinton years coincided with major economic upturn, more proposed mergers to reject.

21. Dr.Phil

Posts: 2357; Member since: Feb 14, 2011

Congratulations, he blocked the two big mergers that you seem to care about, but he allowed the following mergers to take place: Comcast takeover of NBC Universal which created one of the largest media conglomerates in the world (it should be noted that the Bush administration blocked a prior proposed acquisition of Disney by Comcast), the Charter merger with Time Warner Cable and BrightHouse Networks creating the second largest internet cable provider in the U.S., AT&T and DirecTV, American Airlines and US Airways which created the world's largest airline, and so on. So, yes, you can point to the one deal you obviously care about which deals with wireless competition, but he let some other pretty major merger deals go through and we are suffering from the lack of competition. As I said, you can look at campaign contributions and it's relation to whether certain business deals were approved or denied. Obama, like Bush and Clinton and Reagan before him, demonstrated the tendency to approve deals from companies that gave him money. Trump will be no different.

29. threed61

Posts: 259; Member since: May 27, 2011

I don’t care about the other mergers at all. The people involved have said they have a better chance of approval now that Trump is president, that was the whole point of my post.

32. Dr.Phil

Posts: 2357; Member since: Feb 14, 2011

It looks to me like you’re taking a complete 180 here, because you literally went from saying: “Those rejections occurred before the election of Dorito Mussolini, whose administration is fine with big mergers.” To now saying: “I don’t care about the other mergers at all”. Your own original argument was that before the election of Trump, the previous administration was not fine with big mergers. I pointed out that no, there were indeed some big mergers that happened under Obama’s approval. Now you’re claiming you don’t care about the other mergers you only care about this one. So then why even say the words “Those rejections occurred before...whose administration is fine with big mergers”? It implies you believed the Obama administration didn’t like big mergers, and I pointed out otherwise. Now it appears that you’ve abandoned that initial argument and are instead trying to claim you never made it to begin with. You can’t have it both ways.

36. threed61

Posts: 259; Member since: May 27, 2011

I don’t care about the other mergers You brought up. The OP wondered why, after getting blocked twice, they’d try again, I pointed out that Sprint and T-Mo believe they have a better chance of approval after the election, that’s all.

22. Greenmule

Posts: 129; Member since: Apr 24, 2017

Here is an informative article for anyone genuinely interested in the Sprint acquisition. The finance blogger in this article shows that the value of Sprint stock has priced in it an acquisition Should the acquisition not happen, the value of Sprint stock would fall to under $3.00/share. If $3.00/share happens, then we start to hear "government bailout". Which is better: Deutsche Telekom buys Sprint or US taxpayers buy Sprint and rescue a Japanese Holding Company that owns 80% of Sprint? IMO, let Deutsche Telekom rescue the Japanese Holding Company. https://www.fiercewireless.com/wireless/sprint-s-stock-would-fall-to-under-3-without-merger-speculation-moffettnathanson

24. Greenmule

Posts: 129; Member since: Apr 24, 2017

Here is another brief, yet comprehensive article telling why the acquisition is ready and should be completed. For those concerned about "competition": how can Sprint compete if it cannot survive? If a company sells everything below cost, how can they "make it up on volume"? http://www.fiercewireless.com/wireless/lowenstein-s-view-it-s-time-for-t-mobile-and-sprint

41. audibot

Posts: 634; Member since: Jan 26, 2017

obama also was the first to step in and lift the iphone ban because he was a d bag

23. PhoneInQuestion

Posts: 496; Member since: Aug 20, 2017

"Dorito Mussolini" When you can't come up with an argument, use Godwins Law or Godwins Law derivatives.

30. threed61

Posts: 259; Member since: May 27, 2011

Godwin’s law is irrelevant when the subject actually is a fascist.

31. joeytaylor

Posts: 957; Member since: Feb 28, 2015

Nice try

37. PhoneInQuestion

Posts: 496; Member since: Aug 20, 2017

People like you deserve to fear the current POTUS, you're too much of a petulant coward to argue talking points effectively.

38. threed61

Posts: 259; Member since: May 27, 2011

I don't fear him, I love him! As long as he lets his Dorito personality run wild, His party gets nothing done. 9 months, no legislative accomplishments. better yet, he's actively trying to defeat members of his own congressional caucus. My greatest fear is that he will have a tantrum and quit. Mike Pense is a competent, focused, real conservative. He would work with his own party and get things done, truly scary.

2. Lumia_Luigi

Posts: 173; Member since: Mar 22, 2017

Going back to buying my phones outright if this passes through

3. PhoneInQuestion

Posts: 496; Member since: Aug 20, 2017

lol who needs competition?

4. cncrim

Posts: 1588; Member since: Aug 15, 2011

As soon as the merge happen, aspect price hike happen all cross carrier.

5. tallmatt81

Posts: 71; Member since: Dec 22, 2016

#BASTARDS

6. Soundjudgment

Posts: 370; Member since: Oct 10, 2016

Bring it on! Best news.. evah!

8. PhoneInQuestion

Posts: 496; Member since: Aug 20, 2017

You forgot the /s

7. therealestmc

Posts: 679; Member since: Jul 23, 2012

Two crappy networks won't suddenly become great just because they combine. I hate T-Mobile. They are terrible in my area.

10. jonathanfiuwx

Posts: 182; Member since: Mar 10, 2017

Not unless they allow cross compatibility roaming like Google's phone service project fi on smartphones

9. sun0066

Posts: 270; Member since: Feb 12, 2011

If at some point that become a reality I will take my lines from the new company’, got really bad memories about sprint that I do not want to live them again !

11. jonathanfiuwx

Posts: 182; Member since: Mar 10, 2017

Memories without forgiveness that could have evolved and improved is not fear, it's stubbornness

12. tempdogg74

Posts: 136; Member since: Jan 04, 2009

Well glad I got my Note 8 Unlocked. Guess I'll be heading to Verizon till they get things worked out if this merger get approved.

13. darkkjedii

Posts: 31034; Member since: Feb 05, 2011

I wonder if the FCC will shut it down, like when TMo and AT&T tried to merge.

14. MartyK

Posts: 1043; Member since: Apr 11, 2012

This is very bad deal for us consumers.. Like someone said, "Price hike all across the board". Why do they need to merge? Sprint is improving and TMobile is doing well..

26. trojan_horse

Posts: 5868; Member since: May 06, 2016

Sprint is improving? Nah, they're barely surviving.

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