Sprint, T-Mobile Are Never, Ever, Ever Merging Again

by Lawrence Cooper November 6, 2017, 0:19
Sprint, T-Mobile Are Never, Ever, Ever Merging Again

Reports from Japan earlier in the week claimed SoftBank, which owns Sprint, is set to pull the plug on a rumoured merger with Deutsche Telekom's T-Mobile over a dispute about who would control the combined company.

A combined company would have had more than 130 million US subscribers, behind Verizon Communications Inc and AT&T Inc.

T-Mobile made a revised offer, which Sprint is considering, the Journal said.

The fact that both the companies announced the canceled collaboration at the same time, may indicate that there can be a future discussion between the companies about merging once again. The wireless carriers "were unable to find mutually agreeable terms" and want to "put an end to the extensive speculation around a transaction", they said in a joint announcement.

T-Mobile President and CEO John Legere's side: "The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders".

Sprint President and CEO Marcelo Claure said that "while we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination".

Claure also said Sprint has acknowledged it is ideal to move ahead on its own with its assets "including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth".

Both companies had expressed interest in a tie-up this year.

Sprint and its owner, the Japanese conglomerate SoftBank, have always been looking for a deal as the company has struggled to compete on its own.

Had Sprint and T-Mobile successfully combined forces, the resulting carrier-whatever the name may have been-would have had more than 130 million US subscribers.

But some investors wonder whether the best years may now be behind T-Mobile, whose shares have risen ninefold from the low they hit after the global financial crisis to a peak of $68 in June.

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