Mobile reportedly makes Sprint new offer in an effort to save merger
- Author: Latoya Cobb Nov 06, 2017,
Nov 06, 2017, 0:18
It's official: Sprint and T-Mobile have called off talks about a potential merger following months of negotiations that, at one point, likely had investors fairly excited about the potential of a huge new rival to AT&T, the nation's second-largest carrier. A US market with T-Sprint would be (for better or worse) a significantly changed market.
T-Mobile Chief Executive John Legere spoke with Sprint Chief Executive Marcelo Claure on Wednesday, after a T-Mobile board meeting in NY where directors agreed to renew their overtures to Sprint to keep the deal alive, the report said.
Sprint President and CEO Marcelo Claure's side: "While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination". SoftBank CEO Masayoshi Son has talked about spinning off a new company that would own the valuable spectrum as a way to unlock its value.
AT&T's offer to buy T-Mobile in 2011 was spiked and the same regulators signaled in 2014 they would have been against Sprint doing the same thing. Sprint has been struggling to stem the loss of subscribers. T-Mobile, controlled by Germany's Deutsche Telekom which owns roughly 65 percent of it, became the first major carrier to eliminate two-year contracts, a shift quickly embraced by consumers and copied by competitors. Both companies may have to sort that out sooner rather than later. Both Sprint and T-Mobile said they were open to exploring other options. (TMUS) and Sprint Corp. However, it is possible the deal will fail to go through regardless.
But some investors wonder whether the best years may now be behind T-Mobile, whose shares have risen ninefold from the low they hit after the global financial crisis to a peak of $68 in June.
Legal experts also said earlier this year that it was hard to predict whether the current administration would be more receptive of a deal. But President Donald Trump has also made populist comments on antitrust and prioritized job creation as a key platform.