T-Mobile and Sprint reportedly working on final details of merger


The oft-rumored T-Mobile-Sprint merger may be nearing its completion.

T-Mobile and Sprint are working out the final details of a merger, and it’s said that an announcement is likely to come when the two carriers report their quarterly earnings at the end of October. The two sides are reportedly conducting due diligence to determine the exchange ratio that’ll lead to Sprint’s valuation.

Also in discussions are things like where the combined company’s headquarters would be and who would be part of the executive team. It’s said that there are currently no plans to include a breakup fee in order to reduce the risk for T-Mobile and Sprint if the deal is rejected by regulators. However, Sprint majority owner SoftBank may push for a breakup fee if it feels like it’s compromised more on parts of the deal that haven’t yet been finalized.

Neither T-Mobile nor Sprint have announced the dates of their next quarterly earnings reports. Last year, T-Mobile’s fell on October 24th and Sprint’s on October 25th.

While still very much a rumor, the latest reports make it sound like a deal between T-Mobile and Sprint is getting closer and closer to being done. Just because the two carriers strike a deal doesn’t automatically mean that they’ll instantly become one, though, because the deal will also need to earn regulatory approval.

Source: Bloomberg

Tags: , , ,