Update: Bloomberg is reporting Dan Hesse will step down and be replaced in an announcement tomorrow, during which the plan to end pursuit of T-Mobile will also be discussed.
This one's short and sweet, folks: Sprint has dropped its efforts to purchase T-Mobile according to the Wall Street Journal, citing the perpetually present "people familiar with the matter." According to said persons, SoftBank and Sprint decided the merger would simply be too difficult to accomplish in the face of federal regulators, an experience AT&T became all too familiar with back in late 2011, to the tune of a $4 billion severance fee. Read More
Rumors of an impending Sprint acquisition of T-Mobile have swirled for months as America's two underdog carriers have engaged in a not-so-private courtship, and it appears an announcement may be close, if you're inclined to believe Bloomberg.
The deal would allegedly value T-Mobile around $30 billion ($31.3 billion to be precise), though an exact agreement hasn't been reached as to a number. T-Mobile carries a little under $15 billion in debt and over $5 billion in cash, meaning Sprint's new parent firm Softbank will take on even more debt in an attempt to fortify a position against American wireless heavyweights AT&T and Verizon. Read More