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T-Mobile wants $1B breakup fee if Sprint deal falls through
Sprint is desperate to acquire T-Mobile even as regulators continue giving hints that they wouldn’t approve the deal anyway. The Verge notes that Sprint executives have met with up to six banks in recent months to make sure that financial details around the potential deal are solid when it formally puts in a bid.
In a move that suggests that T-Mobile is looking to stop a Sprint buyout from going forward, sources are revealing that T-Mobile is looking for a $1 billion breakup fee should Sprint’s attempted acquisition fail. Softbank’s CEO has stated in the past that he would like to avoid paying such a fee if it could be helped, especially since neither company can afford to pay it.
A few years ago, AT&T attempted to buyout T-Mobile. The buyout did not get approved and therefore AT&T paid T-Mobile $3 billion in a breakup fee along with additional spectrum.
But not to worry as Dish Network’s Chairman has openly stated that the company would consider a bid on T-Mobile if things do not work out with Sprint. That may follow AT&T acquiring DirecTV for $50 billion.
Soon, we will be able to pay one company for our Internet, TV, power, car payments, mortgage payments and even school payments!