Sprint, T-Mobile in Merger Talks

Speculation regarding a potential merger of the two U.S. wireless operators has increased over the year September 27, 2017

OVERLAND PARK, Kan. — Merger talks between T-Mobile and Sprint, the nation’s No. 3 and 4 wireless network operators, have been going on for weeks, and one report last week said the carriers had reached “a major breakthrough” in negotiations, according to fierecewireless.com. Sprint may now be willing to accept a stock-for-stock merger that values Sprint at or near its current price. 

Speculation regarding a potential merger of the two U.S. wireless operators has increased over the year, due both to the end of the quiet period following the incentive auction and the possibility of a lighter regulatory stance from Donald Trump’s administration, as compared to the Obama White House, according to the same article. Japan’s SoftBank, Sprint’s parent company, had tried to acquire T-Mobile and merge the carriers several years ago but dropped the effort after getting resistance from federal regulators, who are still likely to be wary of any deal that consolidates the current wireless market from four major carriers down to three. 

 

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