Sprint And T-Mobile Merger Could Be Announced This Month

There have been countless reports about a Sprint and T-Mobile merger over the past couple of years. The companies reportedly came close to a deal once but that was eventually abandoned. The reports have picked up against recently and both companies are said to be in advanced talks. According to a new report, the Sprint and T-Mobile merger could be announced by the end of this month.

Citing people familiar with the matter, Bloomberg reports that Sprint and T-Mobile are putting the finishing touches on a merger deal that’s going to be announced when the carriers report their quarterly earnings at the end of this month.

Both sides are now reportedly conducting final due diligence to come to an agreement on the exchange ratio that will determine Sprint’s valuation. Deciding on an exchange ratio for an all-stock deal is going to be one of the final steps in closing the deal.

Sprint has a market cap of around $29 billion based on its recent stock price, it’s believed that Sprint’s majority owner SoftBank Group is going to accept a valuation that will be close to the market cap.

Sprint and T-Mobile haven’t confirmed the dates on which they are going to post their quarterly earnings results, so the end of October is the only timeframe there is now to expect an announcement. Bloomberg cautions that the deal could be delayed to a later date if the final details are not hammered out in due time.

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