Sprint And SoftBank Rethink T-Mobile Bid [Report]

There is a lot of speculation surrounding the T-Mobile Sprint merger. The latter is yet to make an official bid for Magenta, even though it has been rumored that there’s over $40 billion available in financing should a deal be made. Apparently Sprint and its parent company Softbank are currently rethinking about going down this road, because apparently they have been shocked by “the level of opposition and its public nature.”

Over the past couple of weeks, executives from both companies have had meeting with the FCC and even the U.S. Department of Justice, trying to rally support for a buyout bid. When AT&T agreed to acquire T-Mobile for $39 billion back in 2011, its bid was blocked based on regulatory concerns. Its likely that such circumstances might prevent Sprint from buying out T-Mobile, and apparently they have regrouped to rethink this move, since both FCC and DoJ reportedly hold the view that U.S. needs four national carriers for this industry to remain competitive. Sprint holds the view that it is by only merging T-Mobile with it can the carrier launch a better offensive against the likes of AT&T and Verizon, two behemoths which control a massive share in the country. No word as yet on when an official bid is going to be made.

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