Thursday, June 5, 2014

Sprint & T-Mobile may announce merger plans this summer

The country’s third and fourth largest wireless carriers, Sprint and T-Mobile, are planning to announce a major merger deal later this summer, multiple publications are reporting today.


SoftBank-owned Sprint is allegedly offering a deal worth $40 per share, which is half stock and half cash, reports Bloomberg.


The two wireless carriers have been rumored to be plotting a merger for months now, as VentureBeat previously reported. This news has been backed up by various recently comments from SoftBank CEO Masayoshi Son about how awful America’s high-speed Internet access is compared to the rest of the world (and what other countries pay for that service).


It’s possibly that SoftBank could see some competition for buying T-Mobile from the other two major carriers Verizon and AT&T, according to Bloomberg’s report. That said, I wouldn’t expect either carrier to make a serious bid. (Verizon is already the largest carrier in the country, and would face lots of scrutiny from federal regulators. And AT&T is sort of tied up with its plans to acquire DirecTV for $48 billion, which also faces heavy criticism from regulators.)


Developing.




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Sprint & T-Mobile may announce merger plans this summer

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