Mobile and Sprint merger could be back on the table

Nov 05, 2017, 01:40
Mobile and Sprint merger could be back on the table

Just a few days after merger negotiations reportedly fell apart between Deutsche Telekom-backed T-Mobile SoftBank-owned Sprint, T-Mobile has reached out to Sprint with a revised offer, the Wall Street Journal reports.

Sprint previously abandoned a bid for T-Mobile in 2014 when it became clear that the Obama administration would block the merger in order to preserve the competition created by having four major nationwide carriers.

T-Mobile and Sprint - after months of negotiations - have ended their talks on a proposed merger, announcing in a joint statement Saturday that they were "unable to find mutually agreeable terms".

Sprint has sought to strengthen its balance sheet by cutting costs.

T-Mobile, meanwhile, has been on a yearslong streak adding customers. The two sides could reach a deal within weeks, but the two companies could still fail to agree on deal terms. Sources had originally stated that Sprint chose to call off the acquisition because Deutsche Telekom was looking to get the majority of control over the entity resulting from the merger; though some Sprint executives were reportedly okay with this, others allegedly wanted more. With the new Trump administration, it was thought regulators might be more relaxed. But no deal was announced immediately following the conclusion of a ban on merger talks in April that was associated with a USA government auction of wireless airwaves.

A source told Reuters in July that SoftBank was considering an acquisition offer for Charter in a deal where it would combine the cable company with Sprint.

This isn't the first time Sprint has tried to acquire T-Mobile, and it may not be the last.

It is still possible that Sprint will reject the new terms or decline investing any more effort into the potential merger.

Industry executives have expressed optimism about the prospect of consolidation on earnings calls.

YOU MIGHT ALSO LIKE
popular