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SoftBank reportedly still interested in T-Mobile-Sprint merger


The rumors of a T-Mobile-Sprint merger are back.

A new report from Reuters claims that SoftBank is willing to give up its control of Sprint to T-Mobile parent company Deutsche Telekom in order to get a T-Mo-Sprint merger done. While SoftBank would reportedly discuss different deals, sources say that the company is willing to cede control of Sprint and then get a minority stake in a combined T-Mo-Sprint.

SoftBank hasn’t actually approached Deutsche Telekom regarding a possible deal because of the anti-collusion rules related to the ongoing 600MHz spectrum auction. Once the auction ends, though, it’s expected that SoftBank and Deutsche Telekom will begin negotiations about a possible deal.

SoftBank owns 83 percent of Sprint, but it’s said that SoftBank is frustrated by Sprint’s lack of major growth in the US.

Both the CEOs of SoftBank and Sprint expressed interest in merging with T-Mobile, and so today’s report doesn’t come as much of a surprise. Whether or not SoftBank giving up control of Sprint would make this merger appealing to Deutsche Telekom remains to be seen, but some have suggested that the current political environment under President Trump could be good for a potential T-Mo-Sprint deal.

Source: Reuters

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