Sprint, T-Mobile merger details being finalized

July 14, 2014

sprint-tmobileFor awhile, we have been reporting about the potential merger between Sprint & T-Mobile being close, especially with Sprint having finalized financing for the deal.

Now, tm0news alerts us to a report from Asian publication, Nikkei, that claims that a deal is officially in place and just the final details need to be ironed out.

“SoftBank is purportedly seeking to buy more than 50% of T-Mobile US shares from German telecoms giant, Deutsche Telekom, which currently owns a majority 67% stake. Nikkei reports that SoftBank will use cash and stock swaps to find the $16 billion (1.7 trillion yen) required to buy that 50% stake.” - tmonews

As we have discussed previously, Sprint Chairman Masayoshi Son has continued promising that he would start a price war if allowed to merge with T-Mobile.

screen-shot-2014-02-14-at-9-02-38-am GeekWire

Unfortuately for Son, when regulators turned down the AT&T and T-Mobile merger, one of the explicit reasons for doing so was that the country was better off with four national wireless carriers. Several weeks ago, telecom analyst Craig Moffett wrote that the T-Mobile Sprint merger had less than a 10% chance of getting regulatory approval.

Rumors have been circulating for awhile now that if allowed to merge, Sprint intends to retain T-Mobile CEO John Legere. Although that would be a great move for the new company, would it be enough to counter the fact that the country would be losing a significant national competitor?

Comments

  • unknown

    #sprintsucks #fruckedup #failing

  • Avrumi

    The problem is that there aren’t 4 competing carriers. There are only 2. Verizon and AT&T. Look at the pie chart.

    • Rickrau5

      T-Mobile is growing incredibly fast. Have u seen there new activation numbers? Ridiculous.. Why do you think cariers are mimicking sale techniques

    • Omegaclawe

      That’s probably mostly because AT&T and Version cover the entire nation, while T-Mobile and Sprint only cover major markets. If you live in a Rural Area, you only have the former two as choices… and specifically in my home state (Nebraska) only Verizon even has towers.

      So for people who live in or frequently visit rural areas, T-Mobile simply isn’t an option.

      They fix that, and I bet T-Mobiles numbers will explode even more than they already have.

  • M3D1T8R

    Oh god no. We need more carriers, not less. Hope this doesn’t go through.

  • Dark_Laser

    Sprint had 12.7% of the

    • Cole Raney

      To be fair, there are over twoce as many total contracts in the second graph. It could just mean that They didn’t keep up with the growth rate, not that they failed.

  • Wall Breaker

    2015 can’t come soon enough I’m jumping ship to AT&T as soon as my contract is up, tired of subpar service and missing out on all the GSM phones.

    • Arturo Raygoza

      Honestly, if this happens I’m leaving T-Mobile.

  • Neo Morpheus
  • Arturo Raygoza

    The CEO saying he would start a price war.

    1 its like a guy saying anything to get in the girls pants then cheat on her and treat her bad.

    2 why the hell can’t he start a price war now ??

    • http://www.androidauthority.com/author/wneilsonjr/ William Neilson Jr.

      Good question. Many have been waiting for just that….and gotten nothing.

  • gokousupasayan

    I don’t see a problem. The only people worried are Verizon and AT&T. The argument that consumers lose because there is less competition is a fabricated one. Yeah, there will be some losses, but the majority will be gains. More carriers just thin out the margins of the little guys. They big guys will continue to hold their customer base and market share. The reason Verizon and AT&T have such a huge share now is because of their past mergers. Sounds awfully hypocritical to be anti-merger. I for one, welcome our new T-Sprint overlords.