Saturday, 18 November, 2017

Sprint merger talks are over

T-Mobile and Sprint work to save merger talks WSJ T-Mobile and Sprint work to save merger talks WSJ
Garry Little | 05 November, 2017, 01:39

Seemingly, Softbank Group and T-Mobile's owner Deutsche Telekom were unable to agree on the ownership ratio for the partnership.

Wireless carriers Sprint and T-Mobile called off a potential merger, saying the companies couldn't come to an agreement that would benefit customers and shareholders.

The announcement marks the latest failed attempt to combine the third- and fourth-largest US wireless carriers, as Sprint parent SoftBank Group Corp 9984.T , and T-Mobile parent, Deutsche Telekom AG, show unwillingness to part with their prized USA telecom assets. But T-Mobile won't pursue a deal that doesn't "result in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance and track record", he said.

T-Mobile (70 million subscribers) and Sprint (54 million subscribers) are the nation's third- and fourth-largest wireless carriers, respectively.

Shares of Sprint and T-Mobile tumbled Monday after rumors emerged that merger talks between the two companies were fizzling.

It comes as Sprint has somewhat struggled in an increasingly competitive U.S. mobile market.

The companies expected to have a better shot at the merger this year under the Trump administration. Now that nothing has changed, Sprint remains in a vulnerable position, having reported annual losses for ten consecutive years.

SoftBank CEO Masayoshi Son said in May that the Obama administration was "quite tough on business", and added "the door is open" for potential mergers with the new administration.

T-Mobile has allegedly now made a new proposal, the terms of which aren't known, and it's said that a deal could be a reached within weeks (though it's not the first time we've heard that regarding this particular partnership).

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