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Published: Sun, September 24, 2017
Economy | By Melissa Porter

Mobile and Sprint could announce their merger in October

Mobile and Sprint could announce their merger in October

T-Mobile USA and Sprint are getting further along in merger talks and are "close to agreeing [to] tentative terms on a deal", Reuters reported today, citing anonymous sources.

According to the Reuters report, the majority of shares in the combined company would be held by T-Mobile owner Deutsche Telekom, while 40 percent to 50 percent would be controlled by SoftBank, the Japanese firm behind Sprint. Regulators previously blocked an earlier attempt at this same transaction due to the fact it would seriously harm competition in the wireless space, but most analysts believe the Trump administration and FCC boss Ajit Pai will happily approve the deal. "This merger will harm all wireless customers, but will bring disproportionate harm upon lower-income users, many of whom rely on T-Mobile and Sprint's more affordable data services as their only home internet connection", Turner said.

Shares in Sprint Corp. Under that deal, SoftBank would have been in control of the merged company, with Deutsche Telekom becoming a minority shareholder.

T-Mobile and Sprint are closing in on an agreement to merge the two wireless providers, an individual with knowledge of the situation confirmed to TheWrap.

"That said, the combined companies would very likely continue to be a challenger and disruptor - in particular given its much different take on video and content from AT&T/DirecTV/Time Warner and Verizon/AOL/Yahoo - or at least until the T-Mo/Sprint/cableco merger rumors start to fly as a next step".

A lobbyist listed as the Ballard Partners contact on the Sprint account did not respond to a request for comment. (REUTERS/Carlo Allegri/File Photo) A T-Mobile logo is advertised on a building sign in Los Angeles, Calif., on May 11, 2017.

Earlier this year, Sprint approached cable company Charter Communications about a potential merger, but quickly abandoned that effort.

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