Latest
Recommended
Published: Sat, September 23, 2017
Economy | By Melissa Porter

A Sprint, T-Mobile Merger Remains a Very Bad Deal for Consumers

A Sprint, T-Mobile Merger Remains a Very Bad Deal for Consumers

According to Reuters, citing people familiar with the matter, Japan's SoftBank - parent company of Sprint - will own between 40 and 50 per cent of the combined company, while T-Mobile's majority owner Deutsche Telekom will own a majority stake.

Following reports of a merger between the two companies, shares for Sprint have increased by 5% to $8.35 in premarket training, whilst T-Mobile's have increased by a smaller amount of 1% to $64.20. (S) are close to agreeing on initial terms for a merger agreement that could close as soon as the end of October, insiders told Reuters.

That would be the opposite of how things were going in 2014 when Sprint was attempting to buy T-Mobile.

Both companies' stocks rose early Friday.

T-Mobile parent Deutsche Telekom would emerge as the majority owner in the stock-for-stock merger.

The companies declined to comment on the report.

Although rumors have come and gone for many years about a tie-up, "they are at an important point" in talks, said Faber, and "they appear to be making much progress". We're waiting to hear from T-Mobile.

Since then, T-Mobile has outperformed Sprint under Chief Executive John Legere, who the sources said would lead the combined company. Due diligence must be completed, and a merger of the third and fourth largest U.S. wireless carriers would face regulatory approval by the U.S. Department of Justice.

T-Mobile and Sprint are nearing a potential merger. Revenues would be expected to exceed $70 billion while analysts think some very significant cost cutting measures could be implemented. But with the Trump administration, that's no longer a worry.

Like this: