WSJ: Sprint, T-Mobile merger is off

sprint-store-nyc.top

“And there was much rejoicing.” The Wall Street Journal reports that Sprint has decided to give up its plans on merging with T-Mobile. According to its anonymous sources, both SoftBank and Sprint feel that winning the approval of U.S. regulators will be too difficult.

Sprint had been working on a bid for T-Mobile for months while studying regulatory opposition. Officials at both the Justice Department and the Federal Communications Commission had signaled early on they were happy with the number of wireless carriers and feared further consolidation of major players would harm consumers.

The FCC and DoJ haven’t made secret the fact that they both like a system where four major wireless carriers are in competition with each other, and convincing them that a bigger 3rd carrier would be better than 2 smaller ones was always going to be a challenge. The site claims that an announcement will likely be made tomorrow (Wed, Aug 6) morning. Sprint still feels consolidation is a possible route at some point in the future, but almost certainly not in form of a major transaction with T-Mobile.

We’re yet to see if this result will effect Iliad’s pursuit of T-Mobile US, or if the French carrier already knew about the impending collapse before any of us did, causing it to bid a much lower sum.

Source: WSJ

Tags: , , , , , ,

  • Jermaine Coakley Sr.

    It’s official: Dan Hesse is out as CEO of Sprint: http://investors.sprint.com/CorporateProfile.aspx?iid=4057219

  • pops87

    So does t-mo get that $2 billion breakup fee thing?

    • Jamison Shaw

      No.

    • Paul

      No. That was if they agreed on everything and went to the chapel to get married. We didn’t make it past the “merging of stuff” part of the relationship.
      It’s for the better…for T-Mobile but not so much sprint.

  • Jamison Shaw

    Fantastic. Now the two can really compete with each other which will ultimately drive prices down and destroy big red and death star. Hopefully Tmobile doesn’t run out of money and spectrum.

    • Matt

      T-Mobile is in much better financial shape.

      • Jamison Shaw

        No….No they’re not lol.

        • tmoguy

          Yes they are. Stop looking at quarterly profits/losses as the sole factor in determining a companies financial position. If T-Mobile gained half as many subscribers each of the last 5 quarters they would have been turning a profit this whole time. Sprint had a nominal financial profit only because it doesn’t cost any money to lose customers.

  • Winski

    Thanks John.. AND, you got Hasse, the most boring CEO of all time, in the process… Go forth and prosper.

    • dtam

      they don’t anymore. Hasse was fired during the same announcement as the deal being dead

      • notyourbusiness

        *Hesse

  • big

    I left sprint for tmobile i couldn’t be happier .
    I wish i would done earlier and I’m saving $20/month and I truly get 4glte speeds.
    Go tmobile!!!!!!!!

  • KingCobra

    Sprint stock is getting hammered over the news. Their market cap is below TMUS now.

    • Roger Sales

      I would start buying up Sprint stock while it’s this low, it’ll eventually get back up to around 30 Billion from where it is now once the dust starts clearing on this fiasco.

  • OnlineRefugee

    Get your head out of the sand. T-Mobile’s rap sheet is quite long. Washington does not like T-Mobile. So anyone trying to get under the sheets with it, that’s a pipe dream.

    Sprint is going 100% prepaid (the way it should be). That’s where the BIG money is. Ask Carlos Slim about the concept.

    • oneiopen

      yeaaa theyre not though

  • GameBoi/KillaBit

    Well Tmo is doing so well, they don’t need them. Sure someone will buy Tmo and that’s cool, but we don’t need a merger. Tmo just needs to work on their coverage and they’ll give the top two dogs a run for their money.

    • Mike Palomba

      True but T-Mo isn’t making as much money as Verizon, ATT, or Sprint. Which is going to make it harder for them to compete

      • superg05

        thats because there rapidly updating the network and paying etfs when the network is near completion there margins will go up

        • Mike Palomba

          Yea I know that Im just saying if someone bought tmobile it may be able to help with the finances. But yes their rapid network expansion and etc payoff program, will way off in the long run

  • ikeepzitreal

    Thank god, and good riddance….

  • Thomas Dylan

    A dozen car companies, a dozen TV manufactures, dozens of computer manufacturers but only 4 phone companies and a couple of cable companies. I’m glad this deal fell thru let them battle it out, start pounding away on ATT and Verizon make ‘em earn a living!

  • Kuma

    Thank God, Bye, bye sprint !
    I wish if Apple or google buy T-mobile. What go you guys think?

    • Jamison Shaw

      I don’t think either of them will. Google needs to focus on google fiber and getting that across the country so I can get rid of bright house lol.

      • Timbo1

        Amen to that! Bright House absolutely blows!!