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T-Mobile and Sprint could agree on merger deal in October

Posted: , by Florin T.

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T-Mobile and Sprint could agree on merger deal in October


A Sprint - T-Mobile merger that could shake up the US wireless industry has been in the rumor mill for years. Now, the deal is close to being finalized - according to Reuters and "people familiar with the matter."  

 

Reportedly, T-Mobile and Sprint are "close to agreeing tentative terms" on the merger. Japan's Softbank, Sprint's parent company, would own at least 40%, but not more than 50% of the newly-formed wireless carrier, while Germany's Deutsche Telekom, T-Mobile's parent company, would retain a majority stake.

 

Reuter has it that a final deal could be reached by the end of October. Of course, even if Softbank and Deutsche Telekom agree on every tiny detail regarding the merger, the deal will still need regulatory approvals.

 

As you may remember, some years back, AT&T agreed to buy T-Mobile, but the deal eventually fell through - one of the main reasons for this being opposition from the US Department of Justice, which argued that such an acquisition would "substantially lessen competition." It remains to be seen how a merger between T-Mobile and Sprint will be seen by US authorities.

 

If T-Mobile and Sprint eventually merge, they'd form a wireless carrier comparable to Verizon and AT&T in terms of subscribers (a bit over 130 million). However, the new carrier would likely still be no. 3 overall, behind both Verizon and AT&T. We'll be keeping a close eye on this, and report back when new, meaningful details are available.

 

source: Reuters

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