That T-Mobile-Sprint Merger Could Happen in October
The long-proposed T-Mobile-Sprint merger could be announced as early as next month. T-Mobile US Inc. is “close to agreeing tentative terms” on a deal to merge with Sprint Corp, according to Reuters.
If a deal can be worked out, we could soon see the No. 3 and No. 4 carrier in the United States become one.
The transaction would significantly consolidate the U.S. telecommunications market and represent the first transformative U.S. merger with significant antitrust risk to be agreed since the inauguration of U.S. President Donald Trump in January, testing his administration’s appetite for such deals.
Earlier this week, CNBC reported the two sides were moving ever-closer to an agreement. Talks between the two sides began earlier this year.
Three years ago, Sprint agreed to purchase T-Mobile US for $32 billion. Regulatory concerns doomed the planned acquisition at the time.
This isn’t the first time T-Mobile US was in merger talks with another U.S. carrier. Back in 2011, AT&T agreed to pay Deutsche Telekom $39 billion for T-Mobile US. The U.S. Department of Justice ultimately blocked the deal because it would “substantially lessen competition” in the wireless industry.
Verizon is currently to No. 1 carrier in the U.S. followed by AT&T, T-Mobile, and Sprint.
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