T-Mobile Sprint Merger Discussed With U.S. Department Of Justice

Ever since it was first rumored that Sprint is looking to acquire T-Mobile, there has been much talk about the response from U.S. regulators. Back in 2011, AT&T agreed to acquire T-Mobile for $39 billion, but the deal was struck down by regulators. The fears have emerged once again, this time for Sprint, which has apparently lined up as much as $31 billion for financing the deal if T-Mobile is to agree to a takeover. The Wall Street Journal reports that Sprint and Softbank CEOs met with the Department of Justice to talk up the T-Mobile Sprint merger, but its a possibility that antitrust authorities might strike down their plans as well.

Softbank, which owns Sprint, has reportedly been courting financial institutions for weeks and it has been told that financing will be available if and when a deal is made. That might not be too easy though, WSJ claims that U.S. antitrust authorities are of the view that the country needs four national carriers to maintain a truly competitive market. On the other hand, in a recent interview T-Mobile CEO John Legere said that a T-Mobile Sprint merger would be pivotal in challenging what he claimed is the duopoly of Verizon and AT&T. It warrants mentioning that even if Sprint’s and T-Mobile’s subscriber base is combined, it still won’t be able to rival AT&T’s.

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