For weeks reports have been hinting at a final decision regarding an oft-rumored T-Mobile and Sprint merger.
However, the latest report in that regard pointed to a delay in any kind of announcement. Now, Nikkei is reporting that the planned merger between the third- and fourth-largest wireless carriers in the United States has been called off behind-the-scenes, and that a formal announcement might happen as soon as Tuesday, October 31.
According to the report, the individuals on SoftBank’s (parent company of Sprint) board had a change of heart, regarding the end result of the merger. Up until recently, SoftBank was okay taking a minority stake within the company that formed after the merger. Deutsche Telekom is the parent company of T-Mobile, and they were demanding that they have the majority share, because they own the company that is the third-largest wireless carrier in the U.S.
However, while SoftBank was originally okay with that, things changed last Friday. The report states that SoftBank has already called off any further talks of a merger. The deal may be officially dead tomorrow.
Rumors regarding a merger between T-Mobile and Sprint have appeared and disappeared on a semi-regular basis over the years. However, these latest reports and rumors seemed to suggest that the talks were finally through the last phases, and that an announcement of a merger was right around the corner. If it weren’t for the report earlier this month pointing to a delay in talks, this reversal would be completely out of the blue.
Still, while this round of talks appears to be done, this is one rumor that will probably not die out completely just yet.[via Nikkei]