Sprint and T-Mobile merger announcement likely postponed to November, report says

Posted:
in General Discussion edited October 2017
Though a long-rumored merger between Sprint and T-Mobile was expected for October, a new report claims the U.S. cellular carriers may push back the announcement until after they reveal respective quarterly earnings.




Citing sources familiar with the matter, Bloomberg reports both companies have been working toward a finalized merger agreement in time for quarterly earnings, but the negotiation process is still underway.

Sprint and T-Mobile have agreed on major facets of the potential deal, but certain unmentioned details are still being hammered out, the report said. If an agreement cannot be reached by the time earnings roll around at the end of October, the companies are likely to delay a public announcement regarding the consolidation to mid or late November.

A report last month claimed the telcos were close to reaching "tentative terms," and estimated that an announcement would be made by the end of October.

That said, the carriers might elect to delay their reporting dates to include news of the merger. Doing so would allow U.S. regulators time adjust to their new positions before taking on the controversial merger. As noted by Bloomberg, Makan Delrahim was confirmed to head the U.S. justice department's antitrust division, the agency that will ultimately certify the merger, less than a month ago.

Sprint, largely owned by Japanese tech giant SoftBank, initially eyed a T-Mobile buyout in 2014, but opposition by government regulators soured the deal. Government antitrust watchdogs squashed a similar bid for T-Mobile by AT&T in 2011.

While an outright purchase of T-Mobile may not be in the cards, a merger with Sprint could be viewed as a more palpable solution. Indeed, SoftBank expressed renewed interest in T-Mobile earlier this year in light of U.S. regulatory changes.

Though they are considered two of America's "big four" wireless carriers, Sprint and T-Mobile command a relatively small portion of the U.S. cellular market. Combined subscribers number at around 130 million people.

Terms of the deal have yet to go public, but reports suggest T-Mobile owner Deutsche Telekom will likely own a majority stake of the combined company, with SoftBank taking a minority share between 40 and 50 percent.

Comments

  • Reply 1 of 6
    I don’t know about this, going from 4 players to 3 players is bad for consumers. T-Mobile has some good data plans now, what’s stopping them from raising prices? 
  • Reply 2 of 6
    *palatable
  • Reply 3 of 6
    LukeCage said:
    I don’t know about this, going from 4 players to 3 players is bad for consumers. T-Mobile has some good data plans now, what’s stopping them from raising prices? 
    As a Sprint customer, it would be welcomed for me. It'll be nice if we see a mix of both for plans and pricing, but with faster and more reliable data overall. It could also pave the way to eliminate Sprint's CDMA network sooner, meaning we'll finally be able to surf & talk at the same time. That's one of the few things I miss about AT&T.
    SoundJudgment
  • Reply 4 of 6
    Do not want.
  • Reply 5 of 6
    As a Sprint customer, it would be welcomed for me. It'll be nice if we see a mix of both for plans and pricing, but with faster and more reliable data overall. It could also pave the way to eliminate Sprint's CDMA network sooner, meaning we'll finally be able to surf & talk at the same time. That's one of the few things I miss about AT&T.
    I’ve always steered away from CDMA networks...never had Sprint or Verizon. Would this merger eliminate the CDMA network Sprint is on? Is it the same network/bands that Verizon uses, thus leaving VZ alone, or are they on different CDMA bands? Just questioning out loud...will be interesting to see what comes of it.
  • Reply 6 of 6
    cornchipcornchip Posts: 1,009member
    As a happy T-mobile subscriber I’m hoping for the best outcome here, but I’m just a touch skeptical...
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