T-Mobile and Sprint ‘Close To Agreeing’ on Merger Terms

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While there have been on and off rumors of T-Mobile and Sprint merging in the US, a new Reuters report today claims that both parties are “close to agreeing” to the final terms of the deal. Sprint’s parent company, SoftBank, would own 40 to 50 percent of the merged company, with T-Mobile’s parent company — Deutsche Telecom — retaining the majority stake.

Both carriers have reached this point after four months of on-and-off talks. However, the deal is only expected to be finalised by October and it is possible that it can still fall through. The move will also invite intense scrutiny as it will lead to a major concentration in the U.S. wireless market. The merger will see the third and fourth largest US operators merging into one for a combined subscriber base of 130 million users and revenues of over $70 billion.

T-Mobile is close to agreeing tentative terms on a deal to merge with peer Sprint Corp, people familiar with the matter said on Friday, a major breakthrough in efforts to merge the third and fourth largest U.S. wireless carriers.

The development follows more than four months of on-and-off talks this year between T-Mobile and Sprint, and comes as the U.S. telecommunications sector seeks ways to tackle investments in 5G technology that will greatly enhance wireless data transfer speeds.

If both companies do end up merging, T-Mobile’s CEO John Legere would end up heading it. Under Legere’s supervision, T-Mobile has constantly performed above expectations and managed to shake even larger players like Verizon and AT&T.  Sprint, on the other hand, has not had much of a success and is clearly struggling to stay relevant in the U.S. wireless market.

[Via Reuters]