astrabal service logo
 story category
The Sprint, T-Mobile Merger May be Dead

A new report indicates that the long-hyped Sprint T-Mobile merger may be falling apart. Sprint owner Softbank and T-Mobile owner Deutsche Telekom had already struck a broad agreement on principle and had even begun debating how to integrate the two companies' networks. But insiders tell Asia news outlet Nikkei that the deal has been scuttled after the two companies couldn't agree on what a merged company should look like.

Click for full size
"(Deutsche Telekom) had insisted on a controlling stake," sources tell the news outlet. "Some at SoftBank were initially amenable as long as the Japanese company retained some influence. But SoftBank's board affirmed at a meeting Friday that the company would not give up control."

The report proceeded to claim that Softbank made the decision on Monday to call the deal off. Neither Sprint nor T-Mobile has yet to confirm the report, though the same sources appear to have confirmed the news during .

Shares of both companies took a major hit in Wall Street trading as the news broke. Sprint shares dropped as much as 9% during morning trading, while T-Mobile stocks were down 5% at one point.

If the deal is indeed dead, that's good news for American consumers and Sprint and T-Mobile employees. Initial reports indicated that the deal could have destroyed anywhere between 10,000 and 30,000 jobs. The reduction in major wireless sector carriers from four to three would have also dramatically reduced competition in the sector, lessening pressure on the remaining three giants to seriously compete on price.

Given T-Mobile's branding is almost entirely focused on being kind to consumers, selling the competition and job killing deal would have been a tall order for brash T-Mobile CEO John Legere.

Update: CNBC reports that while the two sides are struggling to get the deal done due to post-merger management concerns, Softbank may not be planning to back out of the deal entirely.

Most recommended from 92 comments


jdofaz
join:2013-04-15
Phoenix, AZ

jdofaz

Member

Nextel

This tells me Sprint hasn't changed since being acquired by softbank and t-mobile's owner is smart enough not to want to repeat the Sprint/Nextel train-wreck.

Sprint/Nextel showed you can't successfully run a company with 50/50 control. It makes no sense to put the management of the weaker company in control of the merged entity. Sprint doesn't seem to have noticed they are #4 now.
shmerl
join:2013-10-21

shmerl

Member

Good

Let them compete now.

kdwycha
join:2003-01-30
Ruskin, FL

kdwycha

Member

Huzzah!

Today is just full of great news! Mueller striking like a Cobra, Sprint deal on life support. Maybe next Pai departs the FCC for better pastures?
techguru30
join:2016-05-19
Cincinnati, OH
113.0 11.9
·Charter
·T-Mobile
·Time Warner Cable
·Cincinnati Bell

techguru30

Member

Glad they killed it.

Sounds like Soft Bank/Sprint wanted to run everything and Deutsche Telekom/T Mobile USA said no. It looks like Soft Bank lied about letting CEO John Legere/T Mobile USA management running the new combined company. I am glad they killed the merger over this since Soft Bank/Sprint would have ended up creating Nextel 2.0 with their incompetent leadership. This merger in my opinion was already dead at the DOJ since the staffers said under no condition would they approve this merger.

Simba7
I Void Warranties
join:2003-03-24
Billings, MT

Simba7

Member

They'll merge..

..just not the way Sprint wanted. T-Mobile will probably grab them as soon as the bankruptcy hits the papers.

ctaranto
join:2011-12-14
MA

ctaranto

Member

Best news about this merger so far

Finally.

atuarre
Here come the drums
Premium Member
join:2004-02-14
EC/SETX SWLA

atuarre

Premium Member

RE

We knew Son couldn't give up control. Let Sprint descend into bankruptcy and let the chips fall where they may.
srtdodge05
Premium Member
join:2011-10-16
Ypsilanti, MI

srtdodge05

Premium Member

No hard feelings

Softbank needs to just invest in Sprint and be done with it. They aren't will to that then start selling off parts of the company.

cb14
join:2013-02-04
Miami Beach, FL
·Localphone
·Callcentric
·T-Mobile
·Verizon Wireless
·callwithus
·AT&T U-Verse
·Google Voice

cb14

Member

Let's hope this is true.

A combined company with Softbank in control would be the worst kind of disaster. A true wireless catastrophe. Even a merged company with DT in control would be really bad. Fortunately someone at DT is starting to understand that TMUS with Softbank in control would mean the loss of their investment.
Time for Son to start seriously investing into Sprint rather than doing crooked deals( the only thing he is good at) so that Sprint can actually attract customers in other ways than just giving subscriptions away.
AppFarmer
join:2016-05-24
Salinas, CA
·AT&T Wireless Br..

AppFarmer

Member

Merger dead but maybe network integration can live?

Frankly, I've never been in support of a full merger between any of the top four carriers. However, I do think the FCC's way of divvying up airwaves through the auction process is unfair to consumers. All it serves is to provide uneven wireless experience across this country. Sprint and T-Mobile should pool their spectrum and network infrastructure into a joint venture over which neither of them has direct control. The venture should only be concerned about deploying 600 MHz "from sea to shining sea" and maintaining infrastructure. Sprint and T-Mo should behave as-though they were MVNOs and shift their MVNO customers to the venture. Every customer on both their networks should get the Google Fi experience while Sprint and T-Mo continue to compete with each other on pricing and features. They would still benefit from owning the venture because net profits would be divvied up between them AND they would benefit from not having to double up deployment in remote areas. Lonely highway in Podunk? Sprint won't have to deploy b/c T-Mobile's 600 MHz will already cover it. High density region? Focus more on deploying Sprint's higher frequencies and everyone will have a better experience with lower outlay.

Anon26984
@bhn.net

Anon26984

Anon

follow the money

When this news broke and the stock prices fell, I bet someone made a lot of money.

If you believe stock prices have anything to do with how much a company is worth, then you are part of the problem and not part of the solution

trparky
Android... get back here
Premium Member
join:2000-05-24
Cleveland, OH

trparky

Premium Member

What will happen to Sprint?

Sprint already has one foot in the grave as it is, this may be the thing that finally kills them.

ARGONAUT
Have a nice day.
Premium Member
join:2006-01-24
New Albany, IN

ARGONAUT

Premium Member

Going Down

Maybe Sprint has some deck chairs from titanic?

obeythelaw
Premium Member
join:2003-04-16
Bayonne, NJ

obeythelaw

Premium Member

I agree.

Let Sprint just fall apart. Maybe if they went through a bankruptcy they would have to sell off some of their network assets and the others can gobble them up.

Anonfac08
@2600:8800.x

Anonfac08

Anon

Sprint plans to make a significant investment in its network

But SoftBank's board met this past weekend "and expressed concern about giving up control," the Journal wrote today. "Instead of a merger, Sprint plans to make a significant investment in its network," the Journal report also said.

»arstechnica.com/informat ··· for-now/
Aaron2001
join:2016-12-31
Oakville, CT

Aaron2001

Member

Sprint needs to stop jacking pff and invest in their network

Title
Quattrohead
Premium Member
join:2005-02-09
94.9 12.5
·Charter

Quattrohead

Premium Member

Translation

"but Softbank, which controls Sprint, is not planning to withdraw from the deal talks as soon as Tuesday as some reports suggest"
Means Softbank will pull the plug tomorrow.
It's 2017 folks, as soon as something is denied, it happens or ends up being true.

telcodad
MVM
join:2011-09-16
Lincroft, NJ

telcodad

MVM

Don't celebrate too soon!

The reports of this deal's death "[may] have been greatly exaggerated."
said by Karl Bode:

Update: CNBC reports that while the two sides are struggling to get the deal done due to post-merger management concerns, Softbank may not be planning to back out of the deal entirely.


From that CNBC report (»cnbc.com/2017/10/30/ ··· ues.html ):
quote:
The telecom mega-deal combining T-Mobile and Sprint is running into governance and pricing issues, sources say.

The pair are struggling over these issues in talks, but Softbank, which controls Sprint, is not planning to withdraw from the deal talks as soon as Tuesday as some reports suggest, these sources say. ...

How about ..