What a roller coaster the past two months have been. T-Mobile and Sprint were first reported to be in merger talks in late August, with an announcement planned for the end of October. Everything seemed to be going well, but Sprint eventually pulled out due to ownership concerns. The combined carrier would have been majority owned by T-Mobile's parent company, which SoftBank and Sprint weren't happy about.
Just two days ago, T-Mobile's board of directors agreed to continue perusing a deal, and gave a counter-offer to Sprint (details are still unknown). It seems Sprint still wasn't interested, because the two companies have now released a joint statement ending the possibility of a merger. This is the first time either company has made a statement about the merger since talks began.
We have jointly ended talks to consider acquiring Sprint. Any deal for $TMUS has to be a great value for our customers & shareholders or we won’t do it. We’ve been changing this industry for good for the past 5 years and #WeWontStop! https://t.co/hY2JQLh0YP
— John Legere (@JohnLegere) November 4, 2017
T-Mobile CEO John Legere said, "We have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile’s shareholders compared to our outstanding stand-alone performance and track record." Sprint President and CEO Marcelo Claure said, "We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth."
So it seems, at least for now, T-Mobile and Sprint will stay separate. Judging by how many times this has been rumored over the years, I wouldn't be surprised to see them try it again in a year or two.
Bellevue, Washington and Overland Park, Kansas — November 4, 2017 — T-Mobile (NASDAQ: TMUS) and Sprint (NYSE: S) today jointly announced that they have ceased talks to merge as the companies were unable to find mutually agreeable terms.
“The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders. However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile’s shareholders compared to our outstanding stand-alone performance and track record,” said John Legere, President and CEO of T-Mobile US, Inc. “Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories – ultimately redefining the mobile Internet as we know it. We’ve been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless. We won’t stop now.”
Sprint President and CEO and Softbank Board member Marcelo Claure said: “While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth. As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries. We are determined to continue our efforts to change the wireless industry and compete fiercely. We look forward to continuing to take the fight to the duopoly and newly emerging competitors.
About T-Mobile US, Inc.:
As America's Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining the way consumers and businesses buy wireless services through leading product and service innovation. Our advanced nationwide 4G LTE network delivers outstanding wireless experiences to 70.7 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. Our filings with the SEC, including our most recently filed Annual Report on Form 10-K, describe risks that could affect our future results. For more information, please visit http://www.t-mobile.com.
Sprint (NYSE: S) is a communications services company that creates more and better ways to connect its customers to the things they care about most. Sprint served 54 million connections as of Sept. 30, 2017 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; leading no-contract brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Sprint has been named to the Dow Jones Sustainability Index (DJSI) North America for the past five years. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.