Sprint’s Merger With T-Mobile Might Be Announced In October

It has been reported for the past couple of years that Sprint and T-Mobile have been talking about a potential merger in the United States. Nothing has happened officially over these past few years but the companies have reportedly been in talks time and again. It appears to be serious this time around, though. According to a new report, the much-reported Sprint and T-Mobile might finally be confirmed next month.

Reuters reports, citing people familiar with the matter, that T-Mobile and Sprint are close to agreeing tentative terms on a merger deal.

The companies have apparently decided to move forward with the merger as they feel that the U.S. antitrust enforcement environment is now more favorable than it was back in 2014 when they abandoned their previous effort to merge.

SoftBank Group of Japan, which has a controlling stake in Sprint, will own around 40 to 50 percent of the combined entity with other Sprint shareholders. Deutsche Telekom, T-Mobile’s majority stakeholder, and the rest of T-Mobile’s shareholders will reportedly have the majority stake in the combined entity.

Once Sprint and T-Mobile finalize the terms of the deal, the companies will go through due diligence and Reuters’ sources expect the final deal to be announced by the end of October. Nevertheless, they still point out that there’s the possibility of the talks falling through yet again. It ain’t over till it’s over, I guess.

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