Sprint has been talking to eight different banks that are willing to help finance the deal. The merger would put together the third and fourth largest mobile operators in the US.
According to some analysts, Sprint will be able to save up to $6.6 billion on a variety of costs if they are able to merge with T-Mobile. In order to achieve those savings, Sprint will also need to slash prices with deep discounts and most likely a decline in immediate revenue.
One of Son’s biggest project has been his insistence that a merger with T-Mobile would allow Sprint to enter the home broadband market through fixed-LTE broadband space. Yet, this week, Sprint CEO Dan Hesse stated that offering a fixed LTE service is nowhere on Sprint’s horizon.
Sprint & T-Mobile have agreed on the broad outlines of a merger valuing T-Mobile at around $32 billion, according to the Wall Street Journal. Under the deal, Sprint would pay around $40 a share for T-Mobile during the summer time. The deal would be roughly 50% cash and 50% stock. T-Mobile’s largest shareholder, Germany’s Deutsche Telekom AG, would retain a stake of 15% to 20% in the new company.
If allowed to merge, Comcast would therefore controls nearly 40 percent of the U.S. broadband market and provide cable to almost a third of American homes. But of course, Comcast and Time Warner Cable say that this is not anti-competitive and is in the public interest. Time Warner Cable CEO Robert Marcus One listed so-called competitors of Comcast and Time Warner Cable and put mobile networks high on the list
According to a new report from the Wall Street Journal, Sprint is currently preparing to offer a bid to buyout T-Mobile. Reportedly an offer could come sometime in the first-half of 2014.
Political tensions between China and Taiwan mean that a possible merger between HTC and Huawei or Lenovo could be difficult. Could a suitor be found elsewhere?
After a string of poor financial results and underwhelming sales of the HTC One, an analyst from JP Morgan suggests that a merger between HTC and Huawei could help the struggling business survive.
In the face of a strong $25 billion counterbid from Disk Network, Softbank is reportedly considering a bid for T-Mobile if its $21 billion offer for Sprint falls through.
The Wall Street Journal is reporting that T-Mobile intends to sweeten their offer to buyout Metro PCS. This sweetened deal will likely reduce that $15 billion loan debt the newly formed company would almost immediately assume.