Home - , , - Sprint and T-Mobile Reportedly Re-Starting Merger Talks

Sprint and T-Mobile Reportedly Re-Starting Merger Talks

sprint-store
According to Bloomberg, Sprint and T-Mobile are apparently resuming discussions with regards to a possible merger deal. The report cited sources familiar with the development, and these people say that the third and fourth biggest wireless carriers in the country see a mutual advantage in combining their resources to be more competitive against industry leaders Verizon Wireless and AT&T. It bears noting that even if Sprint and T-Mobile add up their respective subscriber bases, the total number will still be fewer than either Verizon or AT&T. But if a merger happens, it would grant them the additional scale to actually start challenging the duopoly.

Even though talks of a Sprint-T-Mobile merger may have already re-started, many still expect the discussions to be hardly a simple matter. As reported by the New York Times, Masayoshi Son, the chief executive officer of SoftBank (the parent company of Sprint), is looking to have SoftBank create a new holding company that would have a controlling interest in the merged business entity, instead of striking a direct acquisition deal.

The New York Times further reported that Son had first proposed such an arrangement to Charter Communications, even though Sprint has a market value of around $34 billion compared to Charter’s $99 billion. But a spokesperson for Charter has made it clear last week that the cable giant is not interested in acquiring Sprint. Interestingly, Son had reportedly also made a similar proposal to Comcast, who like Charter, had no interest in the offer.

According to the Bloomberg report, Son may be pressured to find an integration partner because of Sprint’s considerable impending debt maturities. The fact of that matter is Sprint has suffered significant losses since SoftBank acquired the carrier back in 2013, and the debts it has piled up since are coming due soon. To the company’s credit, recent cost restructuring efforts have allowed it to post its first profit in three years.

For all its financial woes, Sprint remains an attractive target because of its deep spectrum holdings. If the carrier does end up merging with another company, the other party (or the combined entity for that matter) would find itself in a good position to make full use of Sprint’s spectrum assets, just as the whole industry is starting to transition to the 5G era.


Source: Bloomberg


Tags: , ,

14 comments:

Comment Page :
  1. Well, I'll believe it when I see it.

    ReplyDelete
  2. So Sprint wants someone to bail them out while gaining control of T-Mobile, yeah that makes sense.

    ReplyDelete
    Replies
    1. Exactly. Only an IDIOT would want to merge, and then let SPRINT have the reins of control!

      Delete
  3. if the Sprint name has anything to do with t mobile then all of those subs gained in the past few years will all leave bc Sprint has such a bad rep... big big mistake! huge!

    ReplyDelete
  4. plus you can't combine gsm and cdma so with the two competing technologies the merger will be pointless

    ReplyDelete
    Replies
    1. Reminder that CDMA will phase out in sometime 2019

      Delete
    2. plus footprint will be much larger. They may do what they did when T-Mo acquired MetroPCS and convert to GSM.

      Delete
  5. The future is all LTE and VoLTE. GSM and CDMA are both going away. Until that happens the combined company will probably run separate CDMA and GSM networks just like Sprint and T-Mobile do now.

    ReplyDelete
    Replies
    1. exactly correct. but, some people can't see the forrest because the trees are getting in the way of their vision....
      besides, isn't lte an advanced form of gsm anyways?

      Delete
    2. Sort of. LTE was initially made a standard by ETSI, the European GSM standards body. But it's been adopted worldwide as the upgrade path for both CDMA and GSM networks.

      Delete
    3. If this is the future, TMO better update my GS4 to lollipop by then so that it will VoLTE. If not, I will be forced to port to ATT.

      Delete
  6. What about DISH? Large spectrum holdings as well.

    ReplyDelete
  7. they want a "controlling interest" so they can ensure wrecking it like the have historically wrecked everything. I just don't know why sprint can't be allowed to die the death it deserves.

    ReplyDelete
  8. I used to think the Sprint merger was good because it seemed like Son was a no nonsense corporate warrior.

    But then he neglected Sprint and failed to enact much-needed reforms, including the lifting of ESN-based activation restrictions on MVNOs.

    I also thought the T-mobile buyout was a good idea, but then that bastard Son stood them up to try and shop around for a bailout.

    Now that he's come crawling back yet again, T-mobile should just wave their hand and let Sprint fall into bankruptcy so that Legere can pick up their spectrum resources at bargain bin prices whenever they're auctioned off.

    After all, Sprint's network is worthless, their business is filled with an incompetant corporate class, their debts are crippling, and their only value (aside from high-frequency/low coverage spectrum that won't exactly help T-mobile's geographic expansion) is its current subscribers.

    The thing is, the vast majority of them live in the same markets that T-mobile already covers or will cover after the 600mhz tollout, and they pay significantly less for service than they will after switching to T-mobile if Sprint goes belly up.

    Legere would have to be a complete idiot (or an ungodly chessmaster?) to try seasoning this turd, let alone handing over control to the fucktard that let Sprint rot under his supervision.

    Anyway, Sprint's death is worth more to T-mobile than buying/bailing them out, and I hope Legere uses that leverage to simply salvage their spectrum rights for pennies on the dollar before Spartan Kick-ing the treacherous Son's carrier straight into the death pit.

    And on a related note, if T-mobile was still looking to buy a carrier, then US Cellular would be a much better acquisition due to offering an instant expansion into rural coverage, being slowly edged out into obsolescence by Verizon, and yet not being a wholly toxic asset like Sprint currently is.

    Given that USC's basically doomed by their own small footprint and lack of scale, it seems like Legere should be able to get a good price for rescuing them from their inevitable demise in exchange for incorporating their towers, customers and business into the Big Magenta family.

    It would be a genius move from a layman's standpoint, which makes it all the more bewildering that Legere's even thinking about poisoning his carrier with an unwise acquisition that already set Softbank's war chest ablaze.

    Hopefully the investors will step in and set things right, if any of them are savvy enough to realize what a terrible move acquiring Sprint would be.

    ReplyDelete
Comment Page :


Comments must be approved before they will appear. The following types of comments will not be approved:
- Off topic, comments should be related to the contents of the post.
- Name calling and insults directed at other commenters.
- Racist, sexist, ableist etc. comments.
- Language you shouldn't use in front of other people's children.