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T-Mobile and Sprint merger reportedly on the horizon (UPDATE: talks continue)
Details continue to be scarce and this is nothing but rumors, so we are not sure how Softbank's deal would go through. These same sources claim John Legere would continue to head T-Mobile, but Softbank's Masayoshi Son is making it clear that he would like to have some level of power over how Magenta runs after this possible merger.
It has been a while since we last heard of this deal, so we will have to continue waiting to see how this all plays out. Be sure we will be here to report any news.
Original (6/21/17): Rumors of a possible merger between T-Mobile and Sprint have popped up once again. According to a report by German newspaper Handelsblatt earlier this week, T-Mobile’s owner Deutsche Telekom is gearing up to join forces with the fourth largest carrier in the US. It wants to make an all-stock deal with Sprint owner Softbank that would allow it to maintain control of the combined telecom company.
This isn’t the first time we have heard rumors on this topic. Sprint wanted to buy T-Mobile back in 2014 but the deal was prevented by US regulators. As soon as Donald Trump became president, the talks between the two companies regarding a possible merger started again. This is because of the Trump administration’s push for lighter regulations and lower taxes.
Keep in mind that the deal has not been made yet and it’s still possible that it won’t happen. But based on the number of rumors we have heard so far, it’s likely that the two companies will join forces soon.
It’s hard to say what kind of an impact this will have on the market. In general, a deal like this might not be the best, as more competition is always better for consumers because it drives down prices. But even if the two companies do merge, prices probably aren’t going to go up, mainly because the whole point of the deal is to help them compete against bigger players on the market such as AT&T and Verizon.