Potential T-Mobile And Sprint Merger Falls Apart

Nichole Vega
November 5, 2017

Both companies jointly said they couldn't strike mutually agreeable terms.

The previously proposed merger with T-Mobile was supposed to help both carriers fill gaps in coverage and increase their speed and capacity, along with allowing spectrum interlock to make 5G deployment across diversified solutions easier across the entire United States market.

Sprint President and CEO Marcelo Claure said that "while we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination". News of the merger falling through due to a breakdown in power management is not entirely shocking, given the massive dose of personality that CEO John Legere has injected into T-Mobile over his five year tenure; to lose any control over the company's management or image would nearly certainly break any talk of a merger, though it's still unclear exactly how things unfolded to lead to where we are today.

But Sprint stock stumbled Monday after a news report that its parent company, the Japanese conglomerate SoftBank, called off talks with T-Mobile about the possible merger. He said Sprint has agreed it is best to move forward on its own with "significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth".

T-Mobile US Inc. The companies dashed a previous plan to merge in 2014 after meeting resistance in Washington. SoftBank founder and CEO Masayoshi Son reportedly did not want to give up control of Sprint.

It is still possible that Sprint will reject the new terms or decline investing any more effort into the potential merger.

Son met with Trump the month before he took office to talk up an investment in USA businesses.

Legere said that T-Mobile has "been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless". "We won't stop now".

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