Sprint, T-Mobile Reportedly Closing in on Deal Terms
Sep 23 2017
This changing of the guard is clearly visible in the new terms of the deal, which would see T-Mobile owner Deutsche Bank gaining a majority stake in the new company and leave Legere holding the reins of the combined behemoth.
The third and fourth biggest wireless carriers in the US would combine for about 130 million users - putting them on par with Verizon and AT&T.
The two popular U.S. Telecom carriers, T-Mobile U.S. and Sprint Corp could finally merge. Revenues would top $70 billion and, analysts said, there would be massive scope to cut costs.
The combination is expected to get close regulatory scrutiny to see whether the wireless market is getting too concentrated.
A successful deal would create a business with more than 130 million subscribers, just behind Verizon Communications and AT&T. The companies couldn't immediately be reached for comment.
T-Mobile stock traded up 1.03% to $64.04 premarket Friday, Sept. 22, while Sprint shares gained 4.23% to $8.38. In June, German publication Handelsblattreported that T-Mobile's Germany-based parent company, Deutsche Telekom, was preparing a plan to merge with the Overland Park, Kansas-based mobile carrier.
A Sprint-T-Mobile merger that could shake up the USA wireless industry has been in the rumor mill for years.
SoftBank founder Masayoshi Son abandoned an attempt to acquire T-Mobile for Sprint back in 2014, because regulators were anxious about customers losing out.
A banker told THR that the talks have been on and off in recent months. Many feel that this merger has a much better chance of passing under the new administration, though, which could be one of the reasons why talks are reportedly heating up again.