It feels like we’ve been hearing rumors about a Sprint-T-Mobile merger for awhile now, but that deal may finally be happening soon.
Sprint and T-Mobile are working out the final details of a merger, say sources speaking to Bloomberg. That includes conducting the final due diligence to figure out what the exchange ratio will be when determining Sprint’s valuation. It’s said that this will be an all-stock deal.
Another notable detail about this rumor merger is that it’s expected that there will be no breakup fee. This will reduce the risk for the companies involved if the merger is denied by regulators. However, Sprint majority owner SoftBank may still consider a breakup fee if it feels like it’s compromised more than it’d like on other issues.
Sprint and T-Mo are also reportedly hammering out other aspects of this deal, like where the combined company’s headquarters will be and which executives would be on its management team.
It’s rumored that Sprint and T-Mobile are planning to announce their merger around the same time as their quarterly results announcements at the end of October. However, if obstacles come up between now and then, they may push the deal to a later time.
While still very much unconfirmed, it’s sounding like this long-rumored merger between Sprint and T-Mobile may finally happen soon. Of course, the deal will then have to get regulatory approval before it’s allowed to happen. Some have speculated that the current administration may be friendly to a Sprint-T-Mobile merger, but there may still be some antitrust concerns that arise from reducing the number of major U.S. carriers from four to three.
Do you think that this Sprint and T-Mobile merger is going to happen?