Sprint reportedly puts T-Mobile merger talks on hold as it negotiates partnership with Charter and Comcast
We’ve heard a lot of rumblings about a Sprint-T-Mobile merger lately, but it looks like talks of that deal may have been put on ice for now.
A new report from Reuters says that Sprint has paused its merger talks with T-Mobile until the end of July. That’s because Sprint has started two months of exclusive negotiations with Charter and Comcast, sources say.
Sprint is said to be talking to Charter and Comcast about a network resale agreement that would allow Charter and Comcast to improve their wireless offerings. Comcast recently rolled out its own wireless service that runs on Verizon, but it’s alleged that Charter and Comcast are in talks with Sprint to put together a similar network-sharing deal “on better terms”.
It’s also suggested that Charter and Comcast are in early talks to take on an equity stake in Sprint, which would help Sprint invest in its network. The sources of today’s report added that Charter and Comcast could consider acquiring Sprint, but that such a move is unlikely.
This news is interesting because it means that, at least for a little while, there won’t be any movement when it comes to a Sprint-T-Mobile deal. The sources of today’s report say that if Sprint does strike a deal with these cable companies, that doesn’t mean that it won’t continue seeking a merger with T-Mobile, too. So no matter how Sprint’s talks with Charter and Comcast go, a Sprint-T-Mo deal is still a possibility.