T-Mobile, Sprint in merger talks again

T-Mobile and Sprint are in merger talks again, according to CNBC. Both carriers’ parent companies – German Deutsche Telekom owns T-Mobile and Japanese Softbank owns Sprint – are considering a stock-for-stock merger, where Deutsche Telekom would be the majority owner. “People close to the situation stress that negotiators are still weeks away from finalizing a deal and believe the chances of reaching an agreement are not assured,” CNBC reported. “The two sides have not yet set an exchange ratio for a deal, but are currently engaged in talks to hammer out a term sheet.”

Sprint has wanted a T-Mobile merger for years, but earlier discussions never panned out after the FCC and DOJ made clear they would oppose any combination of the  number 3 and  number 4 wireless companies. But now, with a pro-corporation, anti-consumer FCC, it’s unclear the agency would come to the same conclusion, if it receives formal transaction documents.

Links:

T-Mobile and Sprint are in active talks about a merger (CNBC, Sept. 19, 2017)

Regulators would challenge a Sprint, T-Mobile merger (Speed Matters, Dec. 19, 2017)