Mobile And Sprint Deal: Companies Could Try To Merge Again

Mobile And Sprint Deal: Companies Could Try To Merge Again

The canceled merger of 2014 would have placed SoftBank in control of the merged carrier company, with Deutsche Telekom to have been relegated as a minority shareholder. Sprint, based in Overland Park, Kansas, jumped as much as 4.9 percent. Now were hearing about another shakeup that could be coming down the line - a merger between Sprint and T-Mobile.

In a call with analysts during an earnings call in early February, SoftBank CEO Masayoshi Son hinted the company's long-term projections could be unpredictable.

"We may buy, we may sell". While T-Mobile has around 71.5 million customers, Sprint had somewhere around 59.5 million users near the end of 2016. "We are open for any options".

"With the broadcast spectrum auction complete, we expect M&A discussions to heat up in April", added Power.

T-Mobile has been gaining subscriber and revenue share vs. AT&T (T) and Verizon Communications (VZ) for three years with its "Uncarrier"-branded marketing, while Sprint has also showed signs of rebounding".

Revived merger talks between T-Mobile and Sprint will once again be facing obstacles in the form of antitrust regulators and industry watchers, with the possibility that the deal might not be allowed to push through.

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Reuters could not determine how much of a premium SoftBank may want Deutsche Telekom to pay for control of Sprint, which has a current market valuation of $36 billion.

The rumors of a T-Mobile-Sprint merger are back. Indeed, regulators are very likely to create barriers - as they are wont to do whenever they feel a deal could harm competition.

In an interview February 10, Federal Communications Commission Chairman Ajit Pai, a Republican elevated by President Donald Trump rejected the idea that four competitors are necessary. "I couldn't be more excited about the period that's going to come up when this auction is over".

The Trump team has yet to make antitrust appointments at the U.S. Department of Justice that could be used to gauge how deals will be viewed.

Asked what he would tell SoftBank's Son, Pai replied, "What I would tell him in private is exactly what I told the American public at my confirmation hearing, is that the test that I will apply to every transaction that comes before me is whether the consummation of that transaction would be in the public interest". That kind of merger means lots of job cuts in the U.S.