Deutsche Telekom May Get Control of Sprint, In Merger
Feb 18 2017
A new Reuters report today shares that SoftBank is willing to hand over control of Sprint to Deutsche Telekom's T-Mobile to make a merger happen, according to unnamed sources close to the matter.
The companies are now blocked from talking to each other until April 1 due to the Federal Communications Commissions' wireless spectrum auction, which concludes on March 30.
SoftBank, Sprint's parent company, wants to merge with T-Mobile. However, T-Mobile is now in a much better position than they were almost three years ago.
With Verizon and AT&T both fighting to keep customers with new unlimited plans this week and 5G networks on the horizon, a merger could be mutually beneficial for Sprint and T-Mobile.
It's trying again, however, out of "frustration" with its inability to "grow significantly" in the United States, according to Reuters. A combined Sprint and T-Mobile company could spell a lot of trouble for AT&T and Verizon, they would still be third place, but they would have a ton of cash and spectrum at their disposal. In fact, Deutsche Telekom isn't even willing to give up control of T-Mobile like they were in 2014. But Sprint and T-Mobile have made the industry a whole lot more competitive.
The rumored deal is expected to face scrutiny.
The last time that merger talks were underway, SoftBank was the pursuer, looking to acquire T-Mobile.
SoftBank's CEO Masayoshi Son committed to investing $50B in the US which would create 50,000 jobs after meeting with President Trump last December.
While both companies declined any official comment to CNBC, Softbank Chief Executive Masayoshi Son told analysts in February, "We may buy, we may sell". The CEOs of SoftBank and Sprint have expressed interest in doing a deal, and T-Mobile CEO John Legere has said that a merger with Sprint is "one of many potential future outcomes" of T-Mobile working to continue growing.
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