Softbank And Deutsche Telekom In Talks About T-Mobile Buyout By Sprint [Report]

There has been a lot of chatter about Sprint buying out T-Mobile. Having the fourth largest U.S. carrier under its belt would help Sprint launch a much more effective competitions against the two behemoths dominating U.S. mobile industry, Verizon and AT&T. While T-Mobile recently gave off the vibe that it may not be interested in a buyout, latest reports suggest that Softbank, which owns Sprint, and Deutsche Telekom, which holds a 67 percent stake in T-Mobile, have now entered in direct talks.

Speculation surged recently as Deutsche Telekom transferred its stake in T-Mobile from a German holding company to a Dutch holding company, some believe that this might be an indication of its willingness to sell the U.S. arm of T-Mobile. Softbank will reportedly offer as much as $20 billion for the entire business, previous reports claimed that Softbank CEO had approached as many as six financial institutions and that he has received assurances that financing will be available should a deal be made. In direct talks, matters such as the amount of stock and cash to be paid for T-Mobile U.S. and the way the carrier will be integrated with Sprint are expected to be discussed, this according to sources familiar with the matter, Reuters reports.

Adnan Farooqui
Categories: General
Tags: Sprint, T-Mobile