More details on T-Mobile and Sprint merger leak, companies prepping business and network integration plans

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Both T-Mobile and Sprint’s earnings announcements have come and gone without any peep of a merger, but new reports say that work on the deal is ongoing.

First up, a report claims that T-Mobile and Sprint as well as parent companies Deutsche Telekom and SoftBank are still hammering out the details of a merger. There’s no finalized deal, say sources speaking to the Wall Street Journal, but the broad outlines have reportedly been settled. That includes an all-stock deal that’ll see DT have control over the combined company, John Legere running it, and SoftBank CEO Masayoshi Son and DT CEO Tim Höttges being co-chairmen of the board.

It’s said that there will be no cash breakup fee in this merger. Instead, T-Mobile will have to give Sprint an “attractive roaming deal” if the merger is blocked by regulators.

The companies involved are reportedly working out the business and network integration plans of the deal as well as prepping arguments for any antitrust scrutiny that may come from the government. The deal could be announced within the next few weeks, say the sources of this report, though it’s still possible that the whole deal could fall apart.

Meanwhile, a report from Reuters says that T-Mobile and Sprint are starting work to create special committees of their boards of directors. These committees will vote on whether the merger should be signed once a final deal has been agreed upon.

It’s rumored that T-Mobile and Sprint have tentatively agreed on a range for a stock ratio exchange that’ll offer Sprint a premium to where it’s shares are currently trading. The deal could result in SoftBank and other Sprint shareholders holding nearly 40 percent of the combined company.

Finally, it’s said that T-Mobile and Sprint are nearly finished performing due diligence on each other. It echoes the other report in saying that the two companies are now working on a business plan and an integration strategy for the combined entity.

Sources: WSJ, Reuters

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  • Sayahh

    Bad news everyone!

    • Jon

      I totally read that in Professor Farnsworth voice! ^-^

  • squiggleslash

    I’m not generally in favor of mergers, but I’ll be a definite neutral on this one. I don’t think Sprint stands much chance of surviving in the long term. A boost of spectrum and customers might help make T-Mobile more competitive against at&t and Verizon. So this may end up being positive. Let’s hope for the best.

    • Jon

      I wish Sprint would leave TMO alone, but if a merger in the industry is inevitable – which it seems to be – then this seems to be a reasonable take. TMO leadership with Legere as CEO and Son on the Board could keep TMO aggressive.

  • Sharti24

    Oh it’s happening folks! Only thing that will stop this merger is the government and i dont see that happening

  • steadymobb

    There’s no question this is happening. If it gets approved or not is the question. I think it will.

    Oh well! Bye JOD

  • Paul G12K

    This is bad, very bad for consumers.

    • dcmanryan

      Well, I dare them to mess with my plan, especially my 20% for life hookup code and I’ll be gone so quick they won’t even know I was there.

      • They_Call_Me_Bruce

        Did you have to add a line for the 20%? I got excited because last week the mobile team would be in my area offering the 20% off deal. When I got there they said I needed to add a line and couldn’t get rid of any. The combination of not wanting to keep my tablet line much longer, the kids getting antsy, and trying to run the math in my head on the fly caused me to pause on going through. As I was driving home I was thinking and thought I should have gone through with it. Oh well, maybe next time.

        • dcmanryan

          I added 5 in April when the hookup code promo was going on.

      • steveb944

        So you’ll leave to a more expensive service?

        • dcmanryan

          Nope. Cheaper if I lose my 20% off code. I only truly need unlimited on 2 of my 5 lines. Plus T-Mobile service is not as good as AT&T or Verizon in my area. It’s good enough but I’d never pay more for inferior service. I just got back from Las Vegas and if I lived down there I’d have dumped T-Mobile a long time ago. The speed down there was awful and if you were in a casino or hotel good luck.

        • deepdebt

          This. As a result of varied competitive promotions over the last year or so, lots of us have accumulated more lines of service than we actually need. At the first hint of a price increase or a new throttle or restriction, many lines of service will be terminated.

        • dcmanryan

          What I meant was I only need unlimited on 2 lines, have one spare line, 2 others use 5gb each max. But what you said is true. Many have lines they can live without.

        • marque2

          I agree with that which is why o found it interesting to drive by a big Tmobile stadium. Probably a waste.of advertising.

  • francob911 .

    Dont be fooled this merger isn’t going to be beneficial for the consumer in the long run PRICES Will go up do less competition. T-Mobile will only get better with or without Sprint

    • Reagan1

      How is better coverage and more access bad for consumers? Of course prices will go up in the long run, they almost always do.

      • marque2

        I think that is called inflation.

  • Mike McDonald

    If you read/watch CNBC, you may have seen the below. Masayoshi Son has incredibly deep pockets and the access to that amount of capital is likely what’s driving the bus. Imagine the amount of capital that TMUS at its disposal and Dumb & Dumber would have a huge stain in their collective shorts. Maybe the new outfit has to sell off some of Sprint’s bandwidth. Just remember who else paid big $$ in the latest Band 71 auction? Who says Dish might want to sell some of their bandwidth or provide access to the new TMUS entity if they build it out for Dish? https://www.cnbc.com/2017/10/25/softbanks-masayoshi-son-talks-ai-and-investment-on-saudi-panel.html

  • Sounds gravy baby :-)

  • SirStephenH

    Very bad for Americans. I won’t hold my breath waiting for this corrupt administration to block this merger.

    • Reagan1

      How so?

  • Sharti24

    Anyone care to explain how this merger is different from past mergers? Other than it will limit the country to 3 national carriers. Ie sprint/nextel, att/cingular, verizon/alltel

    • They_Call_Me_Bruce

      It could be argued that this deal helps an also-ran better compete with the top 2 carriers, while the AT&T/TMobile deal was about a giant eliminating their smaller competition. In not saying either is right or wrong, just how it could be looked upon.

      • Acdc1a

        In a country that has more lines of service than people is 3 carriers enough to properly maintain competition? That’s the question that has to be asked.

        • They_Call_Me_Bruce

          Is Sprint much competition as it currently stands? Are they influencing the other carriers in any way, or do they just exist? T-mobile was able to shake up the industry with their Uncarrier marketing. Sprint is giving away their service and still can’t get more than a handful of new customers to buy in. Now their 50 million plus customers isn’t anything to sneeze at, but I don’t think they are affecting competition in any serious way.

        • Acdc1a

          They’re still adding 300K plus subs every quarter. That means they’re some competition.

        • They_Call_Me_Bruce

          They had to give the service away to get them. More people would line up for free herpes. They also didn’t force the competition to react. They are the little brother of carriers, they’re there but you have to be reminded that they are.

        • Tony Chen

          sprint should be renamed to snail because thats how slow and buffering their network is.

    • Ethan G

      It works out like this. With the pressure T-Mo has put on the industry over the past few years, wireless companies aren’t making the money they were before hand over fist. The competition has brought back unlimited plans, driven down cost a bit and improved the environment for customers.

      This however is unsustainable, from a pure profit perspective anyway. Investors get nervous when trend lines change and profit margins (despite still being incredibly large) are lower than in previous years. They’re frustrated and want the money that’s slipping back into consumers’ pockets. So they push for things like this merger where it will stifle a bit of the competition.

      T-Mo has been waning on their aggressiveness and if they pick up Sprint, the fire under their asses will be smaller. There’s less incentive for them to shake up the industry (which they’ve been doing less and less of anyway) and instead focus on creating a larger return on investment for the investors.

      What will this look like to consumers? Most likely more B.S. uncarrier moves (bear in mind, I loved the original ones, but the past couple have been weak sauce) meant to give the appearance of giving consumers killer deals while behind the scenes we’ll see small rate increases, possibly subsidies on phones will go up and we could see some odd changes in plans. It doesn’t take much of an increase on consumers to draw significant percentage points.

    • JStatt

      The problem is that Sprint is going to die anyway. It’s not like in the past with t-Mobile when they were struggling but had aggressive moves that could be made. With t-mo remaining extremely aggressive and Now with ATT and VZ playing ball (not that I think they’re being as aggressive as Tmo) it’s extremely unlikely Sprint can dig out of this hole. They’re losing money like crazy and the only value left is their trove of spectrum. Thus we really aren’t eliminating competition as much as we are optimizing one.

  • steveb944

    Wow it’s really happening. If it fails we’re going to have a lot of Sprint customers on our network regardless.

  • SeanBear

    How will they combine CDMA with GSM?

    • Matt

      CDMA will be sunset in favor of GSM. I think they will do it along the same lines as when T-Mobile acquired MetroPCS. CDMA is expensive to maintain due to royalties that have to get paid to Qualcomm.

      • Chuan Ren

        CDMA will just die anyway along with 2G/3G being shutting down soon, since there is no more CDMA in LTE and go on. Verizon will close its 2G/3G(based on CDMA) soon as well to release more bands. ATT already shut off its 2G network, that’s the trend no matter this merger happens or not.

    • JStatt

      They won’t shut off the spigot on CDMA right away, they’d end support for it on new devices and once 90% of Sprint customers have either gotten gsm devices or have VoLTE capability they will make the change to end it once and for all. This deal is really about spectrum and scale more than anything. And the spectrum can be utilized for T-Mo’s network easily.

  • rene

    blah blah blah,
    this people don’t stop talking, with even talking to government,
    check senator ? and see what he is saying about monopoly and merger from this two

    Lawmakers already calling for nightmare T-Mobile Sprint merger to be investigated http://bgr.com/2017/10/09/sprint-t-mobile-merger-analysis-best-network-2017/

  • Chuan Ren

    As long as T-Mobile is in control and Jon is driving the boat, I don’t see much difference. Becoming 3 carriers is unavoidable since Sprint is dying no matter of what. Actually I think it’s better than later on Sprint goes to bankruptcy then let ATT or Verizon take it.

  • Jason

    This will be blocked without a huge divestiture of spectrum. Theyre going to have to give up a sh-tload to meet the rigid market competition tests the Justice dept will do. Prepare for AT&T part 2. Same thing is going to happen again. I told you first ;-) Now we came out of that AT&T fiasco as the rockstars of mobile with amazing growth for 5 years, same thing will keep happening after this rejection with all the 600 we are sitting on.

    • wsj

      Well maybe not. DOJ will look for “market power” in each market. If the combination creates “market power” in any market, they will have to give up spectrum. I am not sure this will be approved. This would leave Verizon as the only CDMA carrier, thus no competition.

      • Sharti24

        Cdma is dying. Plus US cellular is cdma

        • wsj

          Regional carrier with roaming agreements. Now if everyone was using LTE for calls (no CDMA or GSM 2/3G), I could see the deal happening.

    • Chuan Ren

      Not really, Sprint is dying anyway. So it will become 3 carriers even if this deal is blocked, and it might even gets worse for consumers if ATT or Verizon acquires it when Sprint goes into bankruptcy later. DOJ will consider that.

      This time it is very different than ATT/T-Mobile merging, plus there is no big clause(based on current rumors) if merging deal breaks.

  • Audio

    do not want

  • Jeffrey Spalding-Fb

    Looks like Son has balked at TMO ownership control in merger. https://finance.yahoo.com/news/sprint-shares-drop-more-5-170453292.html

    Really hope this was not a bogus deal to get a look a TMO’s books….