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.