Sprint, T-Mobile merger details being finalized
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.
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?