Sprint and T-Mobile reportedly resume merger talks

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A couple of months ago, we heard that Sprint had paused its merger talks with T-Mobile to hold exclusive negotiations with Charter and Comcast. Well, that exclusivity period ended, and so now talks with T-Mo have resumed.

Sprint is once again in talks with T-Mobile over a potential merger, says a report from Bloomberg. Sources say that if a deal were to be reached, it probably wouldn’t be announced until later in 2017 so that each company could conduct due diligence on the other.

Rumors of a Sprint-T-Mobile deal have been swirling for a while now, and executives from Sprint and SoftBank have expressed interest in a deal while T-Mo execs have said that Sprint is a logical partner. There’s little we know about the negotiations right now, but it’s been suggested that we could see an all-stock Sprint sale to T-Mobile. For now we’ll just have to continue to wait and see how this plays out.

Source: Bloomberg

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  • Luis Hotdaddy Vasquez

    T-mobile merging with Sprint? Call it a free fall for T-Mobile! Sprint is probably the worst carrier around the U.S. and if this merger happens; I’m going with AT&T so I don’t deal with those crocks at the yellow bus…

    • superg05

      i hate the idea but T-Mobile would move customers off sprint network to T-mobiles they wouldn’t use it T-mobile uses relocate and re-farm style

      • slybacon

        Exactly. Same as what they did with Metro PCS, but hopefully phase out the Sprint name altogether.

    • slybacon

      The company I work for merged with another company that builds the same product as us. After merging and learning more about their version of the product and the test results, my company decided to cease production of all of their products and only use ours. We absorbed employees, patents, market-share, etc. I would hope Tmo axes Sprint in a merger situation.

  • Jason Caprio

    What may happen is, if the companies merge, they will share each others’ towers but remain 2 separate entities. The better solution would be for T-Mobile to buy out Sprint, then absorb all their spectrum and phase out the Sprint name. Sprint is sitting on TONS of nationwide spectrum of various bands, most of which is not being utilized.

    • Glen Baerett

      The DoJ would require divestitures of un-used spectrum, customers, or assets; and divestiture of any combination of the three would be great for competitive reasons.

      However; the less attractive item is tower assets. T-Mobile’s 700MHz buildout was the result of Verizon and AT&T selling their tower portfolio to crown castle and american tower. When that deal closed, T-Mobile entered into a lease agreement; and the towers are maintained like an apartment. So, a majority of T-Mobile’s new coverage is leased, and eventually, those rental rates will go up in price.

      For T-Mobile, it wasn’t difficult to add 30-lbs of equipment to an existing structure that was already pre-certified for hurricane and gale-force winds. T-Mobile just had to write a check. I doubt they even had to hire a single additional engineer because they tapped into Verizon’s more talented regional engineering teams. With network virtualization, T-Mobile benefits from using engineers in india that cost 1/8th in salary and pension of an American worker, but you need to hire three or four people.

      • Francisco Peña

        and if they sell, they’d get some cash to upgrade again.

    • slybacon

      You don’t think they would do exactly what they did when they took over Metro PCS, except phase out the Sprint name?

      • Jason Caprio

        It’s hard to say. MetroPCS was a very small company so I guess keeping their name as an MVNO wasn’t too hard. Sprint on the other hand is a different beast. Who knows what will happen! We’ve been hearing of these merger talks for years with no action.

        • Sharti24

          Metro isnt a mvno.

        • Jason Caprio

          I’m guessing T-Mobile and Metro are still separate entities sharing towers then?

        • Sharti24

          Metro is owned by tmobile. Its like a pre paid division. Sorta like how att operates cricket. Same concept.

        • Jason Caprio

          That’s basically what an MVNO is. I had to research to be sure lol

          https://en.wikipedia.org/wiki/List_of_United_States_mobile_virtual_network_operators

        • slybacon

          I agree that there hasn’t been any action. And all these guesses don’t mean anything until we are told what will happen. Sprint and Verizon are the only two (in the world?) with CDMA networks still. Tmo would probably love to kill that off and integrate all of Sprint’s spectrum into theirs (I’ve heard Sprint has tons of spectrum).

  • VegasSmitty

    If it happens I’d be gone, I had Sprint once, won’t deal with those morons again!

    • Mike

      Fool Sprint is not taking over T-Mobile. T-Mobile is taking over Sprint.

      • SurvivingSunnyvale

        If the Sprint management is absorbed into T-Mobile, then you would also be getting the Sprint problems along with them.

        • Mike

          If T-Mobile is buying their stock then what reason would Sprint management become a part of T-Mobile. Sprint is selling not T-Mobile. Sprint will become T-Mobile which means their CDMA network will be shut down and used for T-Mobile GSM netowork like Metro PCS did.

      • VegasSmitty

        You’ve apparently never had to deal with the morons at Sprint. But keep posting and prove how dumb you really are.

    • yankeesusa

      Please read article

  • Steven

    I like the idea!!! Buy out Sprint, get their towers and spectrum. There are some weird strange areas that Sprint has service and if everything goes smooth with a buy out, T-mobile could instantly grow their footprint as well as capacity. I hope it happens that way, Same name/pricing/businessplan, but additions to resources and subs.

  • Sharti24

    Please don’t. It will be a messy merger

  • Kenneth Warner

    So ive seen some idiots say that TMobile would go out the door not true Sprint would no longer be a company after a few years TMobile would benefit hugely from this i guess you could call it sprin-T-mobil i suppose but then again we dont need the posion of sprint in our name would we get sprints symbol and color it magenta though? Would be cool

    • AA-Ron

      It would be like the att and cingular deal where the two would just melt into tmobile and Sprint would cease to exist.

  • Sharti24

    Why? You’ll have dual coverage for the same price

  • JBLmobileG1

    Ok so Sprint and Tmobile were talking but because the Cable company came in they decided to put these talks on hold. Ots obvious that they didnt find Sprint good enough so again Sprint is comin back to Tmobile to resume talks. I call BS…. Sprint is a horrible company that just needs to die off. If this was an episode of “Shark Tanks” as soon as Sprint told Tmobile they are going to talk to Charter or whomever the Sharks would have said “I am out” which is exactly what T-Mobile needs to do. Sprint is a waste of time and money. If Tmobile and DT was smart they would tell Sprint to take a hike too.

    • Sharti24

      Not if the price is right they wont

      • JBLmobileG1

        If its for pennies on the dollar then maybe but it needs to be cheap enough. Even so.. Sprint has so much debt that the merger wouldn’t be worth it…. soooo I am out! And you can bet you’ll hear T-Mobile customers saying that as well if they do merge with Sprint.

        • Sharti24

          The metro merger went quick and smoothly, Why wouldnt this one? Shut down all cdma and use sprints band 25 for additional lte bandwidth. Save the band 41 for 5G. Not too sure what to do with band 26 since its only 5×5 and theyre about to deploy band 71 in the future. By the time all that happens run an all Lte network in 2020

        • Trevnerdio

          Metro also had about 1/6 the amount of customers as Sprint, so, so much less equipment (they were more or less a regional carrier before T-Mo bought them) and way less debt.

  • Sharti24

    How much do you think sprint wants for their company? My guess is easily $100 million. All that spectrum and towers already in place. This ain’t cingular, nextel, alltel or metro we’re talking about here

    • MindFog2287

      Sprint’s market cap is $34 billion. T-Mobile doesn’t need the spectrum now. I don’t get what the big deal is about buying Sprint when T-Mobile just spent $8 billion in new 600Mhz spectrum.

      • yankeesusa

        They wouldn’t be buying them. They would be merging and if you read the article it’s mostly a stocks deal.

    • Matt

      T-Mobile just might be buying a headache. I would encourage them to not merge with Spring.

    • slybacon

      Haha! I love the discount price tag ;)

    • SirStephenH

      Sprint’s towers would be worthless to T-Mobile because they overlap with their own. The deal would be mainly for spectrum and customers.

  • gpt2010

    If anything it will improve signal for Sprint customers. CDMA won’t be around if TMO buys them out. The network will be updated to GSM. Their customers will enjoy a more robust service eventually once Sprint phones have been replaced. I see this being no different than what TMO did with Metro PCS.

    • Sharti24

      If tmobile buys out sprint they will be an all Lte network by the time everything goes through

  • Ricky

    Yes i Miss Nextel Also :(

  • phillyundead

    This would be enough for me to switch to Verizon. Sprint is cancer.

  • slybacon

    Stop the drama. Wait for changes to actually happen, don’t just anticipate them. ;)

  • SneakyPete

    Verizon here I come. Sprint is suncom on steroids. Shame on tmo to even consider this.

  • frankinnoho

    Goddammit

  • SirStephenH

    Dish is a way more logical option than Sprint.