Sprint T-Mobile Merger To Be Discussed With FCC

Ever since it was first rumored that Sprint is interested in buying T-Mobile, there has been a lot of speculation about the response of regulatory authorities over the Sprint T-Mobile merger. This isn’t the first time that Magenta has attracted a buyer, back in 2011 it agreed to sell itself to AT&T for $39 billion, but the deal was blocked by regulators. Analysts are of the view that similar issues might plague a similar deal this time around as well, which is presumably why Sprint higher-ups are meeting with regulators to see where they lean prior to making an official buyout bid for T-Mobile U.S.

According to The Wall Street Journal, Sprint Chairman Masayoshi Son, who allow happens to be the CEO of Softbank, is scheduled to meet with the Federal Communication Commission’s head today. They may talk about a broad range of subjects, but it is believed that the Sprint T-Mobile merger will be a prominent fixture during the talks. Recently Sprint’s top executives also met with the Justice Department to take its temperature prior to making an official bid for the T-Mobile, the department has reportedly signalled that it will heavily scrutinize the deal, if its ever made. Regulators may strike down the deal due to concerns that three major U.S. mobile operators will reduce competition in the market, though for now their line of action is not entirely known for sure. We first have to wait for Sprint to put a dollar figure on its quest for T-Mobile.

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