Take a quick trip back to November of last year, when we heard that T-Mobile and Sprint had officially called off their talks surrounding a potential merger between the two carriers.
That wasn’t the first, or last time, we’d heard about a potential merger between the two carriers. This last time, though, seemed to be the closest the pair had gotten. Unfortunately neither company could come to terms (T-Mobile wanted more than it had in previous talks, because it is the third-largest wireless carrier in the United States, with Sprint falling to fourth).
But, like any good rumor, this one refused to die. Earlier this month we heard that the two were back at it again, but that they were in the very, very early stages (again). Now, Reuters is reporting today that the two might actually be far more along than preliminary discussions, and could be coming to a deal as early as next week.
The report indicates that the two companies aren’t able to come to terms in regards to voting control with the combined entities. Deutsche Telekom, which is the parent company of T-Mobile, reportedly wants voting control, whether or not it has a majority stake in the merged companies. It gets tricky when it comes to the parent companies, because Deutsche Telekom owns 63% of T-Mobile, while SoftBank owns over 85 percent of Sprint.
Right now, both wireless carriers are putting together debt financing packages. That will be what is used to fund a deal, if a deal can be struck.
As it stands right now, nothing is actually official. Neither carrier has even announced that they are moving forward with talks. However, if this report is true then it indicates that a deal may be announced next week and the wireless carrier market will change in a big way.[via Reuters]