SoftBank and T-Mobile said to be in final stages of talks regarding a deal

SoftBank and T-Mobile said to be in final stages of talks regarding a deal
Just because T-Mobile was the most electrifying and innovative of the four major carriers in the U.S. this year, doesn't mean that the carrier will remain independent. Unfortunately for CEO John Legere and crew, with 67% of the company held by Deutsche Telekom, whichever industry giant can pay the German telecom giant what it is asking for the shares, will most likely be T-Mobile's new owner. Both SoftBank and DISH Network are rumored to be interested in buying Deutsche Telekom's stake and taking over T-Mobile.

As Santa prepares to make his journey around the world, word is leaking out tonight that Japanese telecom titan SoftBank is in the final stages of talks with Deutsche Telekom to purchase its T-Mobile shares. The report, published by Japan's Nikkei news service, cites anonymous sources as saying that SoftBank is closing in on its prey. The company already owns 78% of Sprint, which it bought earlier this year, beating out DISH Network for the prize.

Originally, SoftBank was considering using some of the shares of Sprint that it owns, to purchase the T-Mobile shares it wants to buy. But Deutsche Telekom is said to be holding out for cash instead of stock, and that has led SoftBank to visit 5 major banks, hat in hand, seeking to borrow the $19 billion that it needs to complete a deal for T-Mobile. A Sprint-T-Mobile combination would provide a much tougher challenge for the top two U.S.carriers, Verizon and AT&T.

Meanwhile, if we learned one thing this summer about DISH and its enigmatic CEO Charles Ergen, it is to expect the unexpected. Even without obtaining financing, DISH made the SoftBank-Sprint deal more challenging for the Japanese firm by lobbing in a last second $25.5 billion bid to buy all of Sprint. He did the same thing with Sprint's deal to buy Clearwire. With that in mind, it would not be surprising if Ergen throws in a bid to buy Sprint right on Christmas Day. Perhaps the executive will have learned his lesson from earlier this year and obtained financing for such a deal. And since $20 billion is a princely sum, if DISH locks up financing from certain top money center banks, he takes those banks out of play for SoftBank. 

T-Mobile is much more of a polished gem now than it was in 2011 when AT&T offered to buy the carrier for $39 billion. The deal was unable to pass muster with U.S. regulators and AT&T withdrew its offer giving T-Mobile $3 billion in cash and wireless spectrum to make up for its decision to let the deal die. SoftBank Chief Executive Officer Masayoshi Son has already stated that any deal for T-Mobile needs to have a small break-up fee since SoftBank is already saddled with huge amounts of debt.

source: Reuters

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70 Comments

64. Landmarkcm

Posts: 507; Member since: Aug 11, 2009

This thread is turning into a debate about how bad Sprint is (my comments part of it). Who knows maybey if they merge with Tmobile as long as they don't drag them down! It could be ok I guess. It's just that Sprint has a bad taste in many peoples mouths & people who are or already got tired of waiting on them to improve have moved to Tmobile. I know they are not going to eliminate the GSM etc so im not terribly worried.

56. isergio04

Posts: 5; Member since: Dec 25, 2013

What if the public is interpreting this backward. If SoftBank completes a bid for Tmobile, then Sprint is dissolved into Tmobile. Since you know Tmo has a better record with incompatibility. Tmobile is far more agile. A company with as many subscribers as ATT and with Legere at the wheel would be devastating.

57. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

You are so lost that making a reply is almost just futile. Thinking bakwards is definitely the way to go. VoLTE will cause the phasing out of 2g/3g on all carriers! Think about that! Tmobile will just be a use for a largher foot print, and possible spectrum sharing , and coverage map expansion. There seems to be no reason to call it Tmobile especailly when you see the deal was 1st approached as being financed with Sprint Stock. Sprint will be the parent company for sure!

48. retronig

Posts: 23; Member since: Nov 21, 2013

Why cant the moron ceo for Softbank understand they need to worry about fixing sprint first! Here he is buying into yet another carrier. I am a tmo customer and if they are going to be part of sprint in the end I am going to leave for sure and I will not pay off the rest of the money I owe for my phn. I would gladly give them the phn back but I wont pay a dime to sprint. I worked for sprint and they were a horrible company with terrible service and they haven't changed at all. I felt bad for all the customers that had nothing but trouble. Lets just pray that DOJ or someone in the the US govt steps in and axs this horrible deal just like they did with the tmo/at&t merger that luckly never happened.

54. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

Sprint is being fixed only you don't have a clue about what is going on. You call him a moron but why don't look in the mirror and reflect who runs a successful company and who does not. Do what you have to but you are not as smart or informed as you think that you are if thats your only rational for leaving.

69. retronig

Posts: 23; Member since: Nov 21, 2013

Trust me I know a lil more than you unless you worked at sprint like I did. So yes I do have clue. Sounds like from your other posts your a sprint lover anyways lol. Well you can go ahead and sleep with Dan Hesse lol.

55. youlookfoolish

Posts: 193; Member since: Dec 14, 2012

You're a jackass. You're going to ruin your own credit because of fanboy-ism to a carrier that honestly gives no s**t about you or your credit score? T-Mobile has the weakest overall national coverage foot print. Fact. T-Mobile is owned by a company that wants to sell them. Fact. Sprint has 10+ million more customers even after all of their losses. Fact. The parent company that owns Sprint can pay cash where others cannot. Fact. T-Mobile fan boys arguing over subjective things like coverage or customer service are complete and total jokes as human beings and have absolutely zero credabilty. I pray Sprint acting under Softbank buys T-Mobile who is nothing more than a niche carrier. Not for logical reasons like spectrum expansion or customer additions. But for no other reason than to make you mouth breathers clapping over unlocked phones running on HSPA cry in your pillows.

47. JIGGA4LIFER

Posts: 3; Member since: Dec 16, 2013

I been with Sprint since 1999 believe or not. I had every new phone that was avalible to me when camera phones was coming out and when color was coming to phones. The only problem i had with sprint was customer service during an issuse that was not my fault but of the service i got from a store i was purchacing a new phone from. i think QWIKSTRIKE has a point... wait until next year to see what sprint has then you will see....

53. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

I was with them since they opened the doors in 1997. I almost left but decided to research what was going on. Since I use my phone more for calling getting fast data is a second requirement. I talked on my phone from Massachusetts to Tampa florida not missing a vowel or consonant so coverage is not the real problem. It's the upgrades. Things are getting better in NYC so I bought a Spark Device the Nexus 5 off contract. I even have a Tmobile Simm but don't feel the need to use it. I checked TMobiles coverage and it's worse than Sprint sowhy donw grade fora faster speed today when I am thinking logn term Sprint is a better solution for me! I have unlimited data and in the Poconos I stream Netflix all weekend with no issues and get coverage. In the Pocono's my girls Verizon GS4 doesnt get coverage where Sprint does, and Vice versa. Soooooo no one carrier has covergae every where. Be wise research what is going on then make a decision.

34. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

I dont know about you, but if SoftBank sees Tmobile as a company with alot of potential, the Sprint should be worried. Tmobile is the more attractive company when it comes to style, business plan, and overall quality. At the rate that Sprint is heading, Id give them 4 years and they will no longer exist and Tmobile will end up gaining those customers due to a major collapse like bankruptcy

42. Mr.phone.guy

Posts: 6; Member since: Dec 24, 2013

You have to be kidding me. You have no clue what you are taking about. You are so ignorant you deserve to be ridiculed.

65. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

As for you, I dont give a damn what you say, Im going to stand by what I said. If im wrong, so be it........but dont ever ridicule someone for voicing their opinion. And since you didnt like what I said, why comment about it???

67. Mr.phone.guy

Posts: 6; Member since: Dec 24, 2013

You stand by you're opinion that Sprint is going bankrupt in four years even though Sprint is now owned by one of the richest phone companies in the world? It's not a matter of opinion when there are facts involved. Its like saying the color blue is actually red. If you post on a message board where hundreds of people read what you post, DO SOME RESEARCH SO YOU CAN OFFER AN INTELLIGENT CONTRIBUTION TO THE DISCUSSION INSTEAD OF LOOKING LIKE A COMPLETE MORON. I picture you as a person who walks around all the time wearing a helmet so you dont get hurt when you fall. I can hear you talking now...."durr......T-Mobile got style points.....durr.........maybe Nextel should buy Prime co......durr.......".

45. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

You are definitely way out on a limb, and if your hands are as big as you always brag about you better get a grip and hold on tight. Wait until 2014-2015 is over you will probably eat every word that you just posted. You speak based on opinion not fact, obviously you have not doen any fact finding based on your rediculous opinion. Research and then post the facts that support what you say then come again.

66. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

Then why would SoftBank want to buy Tmobile?

30. joseram695

Posts: 79; Member since: May 28, 2012

This is a terrible idea in my opinion sprint can barely handle their own network!!!!

20. bwhiting

Posts: 188; Member since: Jun 15, 2013

With softback they will be two seperate companies but might be able to benefit off what the other has strong points in so it might be beneficial for both of them.

25. HASHTAG unregistered

I don't think it'll be two separate companies because Softbank is using Sprint to purchase T-Mobile. If it were to be two different companies, Softbank would simply just purchase T-Mobile w/o going through Sprint.

26. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Even somehow if this went through, it would be the same parent company, regardless if they would be run separately or not. Tried and tested before, they would ultimately bleed on each other.

29. HASHTAG unregistered

Yeah, I know; and I agree!

15. gameday78

Posts: 48; Member since: Mar 17, 2012

Nextel: iDen + Sprint: CDMA = Forced iDen shutdown handoff issues and massive service costs to convert every customer to one network... massive customer exodus to T-Mo, Verizon and Att... Since 2005 Sprint has a negative 8% subscriber growth*. (*FCC subscriber numbers 6/13) Sprint: CDMA, WiMax, LTE + T-Mobile: GSM, HSPA, LTE (Metro PCS CDMA, LTE) = Failure... Casue all those different networks will work out!

11. KFear

Posts: 170; Member since: Feb 06, 2012

SPRINT IS NOT PURCHASING THEM....SOFTBANK IS! SOFTBANK!!!!! Not the same company. NOT THE SAME COMPANY!!!!!!!!

14. Landmarkcm

Posts: 507; Member since: Aug 11, 2009

Well they better not put them under Sprint name though if they do!

21. Mr.phone.guy

Posts: 6; Member since: Dec 24, 2013

With Clearview and Nextel spectrum now being utilized for lte etc...and the addition of T Mobile spectrum, Softbank/Sprint/ T Mobile will be an absolute power house which At&t and Verizon should fear. Moving forward, everyone who thinks Sprint will continue to operate like it did before the Softbank buyout is ignorant. As a 7 year customer of Sprint, I can say the wait has finally paid off. I am enjoying expanded voice coverage in my areas and lte download speeds of 15 meg Inside my appartment.

24. Landmarkcm

Posts: 507; Member since: Aug 11, 2009

Your one of the few. No excuse why they should not have great coverage here in Vegas by Now! Most people are sick of there excuses. Plus ill take GSM & unlocked phones any day.

40. Mr.phone.guy

Posts: 6; Member since: Dec 24, 2013

You're one of few.

44. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

I have the Nexus 5 from Google Play on Sprint now.Rofl I will have Spark speeds in NYC and a unlocked phone...go figure!

16. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Do you have half a clue what you're even talking about? Softbank owns the majority of Sprint. They want to buy the majority of T-Mobile. You know what happens after that? They get merged. Same company will own both. Learn how buyouts, mergers, and acquisitions work in the United States before you roll hard on your caps.

19. KFear

Posts: 170; Member since: Feb 06, 2012

I don't think this will end up being a merger at all really. That's my opinion. T-Mobile is doing well now, why change that? And why try to attack me? Ask for more of my opinion and maybe we can have a civilized conversation so that we each can learn a little more. Sorry for the caps. I just knew people were going to say, "how can Sprint buy TMobile"

27. corporateJP

Posts: 2458; Member since: Nov 28, 2009

No covering your tracks. They would ultimately be the same company because they would both be under the same umbrella, the same parent company, regardless of if they are fully merged or run separately. You get attacked for capping like everyone here is not on your level, yet you are far from the expert on the subject.

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