The road to merging two large carriers isn't an easy one. For Sprint and T-Mobile to merge into "New T-Mobile," a lot of hearts need to be won over. In October 2018, company shareholders approved the merger and in December, "Team Telecom" and the Committee on Foreign Investments green-lighted it too. The next two hurdles to cross are clearances from the Department of Justice and FCC. Yesterday, T-Mobile CEO John Legere penned a letter to FCC Chairman Ajit Pai asking for approval. In this, he promised to keep rates "the same or less" than the current plans by T-Mobile and Sprint, for at least three years. Read More
T-Mobile, the third largest wireless carrier in the US by subscriber count, posted impressive third quarter results Tuesday. The operator revealed 774,000 net new monthly-billed subscribers — far above Wall Street estimates of around 628,000 net additions. As for revenue, T-Mobile brought in $10.84 billion, beating estimates of $10.72 billion. Perhaps the best news of all for the wireless company's future, though, was its announcement that shareholders had greenlit its acquisition of Sprint, the fourth largest American carrier. Read More
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. Read More
T-Mobile and Sprint were first reported to be in merger talks in late August, with the announcement originally planned for the end of October. Last month, a report from Bloomberg stated that the carriers' parent companies (Deutsche Telekom and SoftBank) were in the final stages of an agreement. But the end of October came and went with no announcement. Read More
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