SoftBank reportedly waiting on final T-Mobile-Sprint merger proposal from Deutsche Telekom

sprintlogotmo

Following the news that SoftBank wants to back out of its T-Mobile-Sprint merger talks, a new report has detailed the final efforts to save the deal.

SoftBank is waiting to hear Deutsche Telekom’s final proposal to complete the T-Mobile-Sprint merger that they’ve been negotiating lately. The offer is expected this week, say sources speaking to Bloomberg, and will include how many Sprint shares it’ll accept for each T-Mobile share.

It’s rumored that SoftBank wants an exchange ratio of fewer than 8 Sprint shares per T-Mobile share. The current exchange ratio is more than 9.

Even if DT’s proposal is more appealing to SoftBank, the Sprint parent company may still not take the offer. It’s said that SoftBank CEO Masayoshi Son is reluctant to give up control of Sprint, and so SoftBank is working to keep him in a decision-making role for the combined T-Mobile-Sprint, possibly as a co-chairman.

In recent weeks, rumors said that the T-Mobile-Sprint merger was nearly complete and that the companies involved were ironing out the final details. That all changed this week, though, with reports suggesting that SoftBank wanted to end the merger talks because it didn’t want to give up control to DT. Now we’ll just have to wait and see if DT can come back with an offer that SoftBank deems satisfactory if if these merger talks ends up getting killed.

Source: Bloomberg

Tags: , , ,

  • Andy Madeit

    Just when I thought this was deal was dead Was dead. Ugh

  • Doble-A

    Don’t do it!

  • They_Call_Me_Bruce

    T-mobile would probably be wise to stick to their guns about leadership or pull the plug. Masayoshi Son sounds like an egotistical guy who despite leading a last place team thinks that he is the one that can lead it to great things in the future. Do this deal with those terms and watch him take down two carriers instead of the one he is currently exceeding at.

    • Brad C

      I worked at Sprint as a technician when SoftBank took over.. we finally had a little “money” to fix a few things, but the management at Sprint continues to be the problem. They are not upgrading things like the core to IMS (why they do not have VoLTE, and their WiFi calling is half baked, as is “Calling PLUS” VoIP over LTE)

      They’d be wise to let T-Mobile come in, clean house, and run the network properly.

      Let T-Mobile come in, tie into an IMS core.. Change 2500MHz to a FDD instead of TDD setup (for reliable VoLTE), then tie that Spectrum together to become a powerhouse being able to offer actual home internet replacement via the massive 2500MHz band.

      Sprint has been on life support for a decade, and will die eventually. It’s just somehow still clinging to life. Just let it go, and let someone who knows how to manage a network come in and use it to it’s full potential.

      • Willie D

        Sounds like what you’re saying is what I’ve said for years. Without a few key things, Sprint’s network will never perform as well as it should, let alone be a competing factor and have uniformity to other carriers (as a roaming carrier or not), and thats a full fledged IMS core thats able to take VoLTE across disparate spectrum bands, carrier aggregation in all bands, true WiFi Calling, and putting to use that 8t8r antenna system they have. Also, stop relying on HPUE to “Save the day” with coverage, actually deploy sites in the right areas to utilize high frequency spectrum – that means, stop trying to change the laws of physics of radio waves, and deploy things correctly how they work the first time, all other networks do it, why cant Sprint.
        It also means, M. Son all the way to every customer service rep in call centers needs to be jobless in Sprint, and start over. Their customer service is the worst, they essentially blame users devices or the user itself for the reasons they have issues with the network. Constant promises that upgrading equipment at a higher cost, locking in long term EIPs and leases will somehow magically make the network work? NOPE. Tired of them.
        To be honest, DT would be wise to say, “We want a breakup fee, 50% of your Band 41 spectrum, and a “will not merge” clause on Sprint for 5 years.” Preventing Sprint from running to another carrier or cable company, preventing Sprint from making these silly time wasting merger ideas that wont happen. Consequences need to be paid dearly from Sprint since they clearly havent learned their lesson before how bad they are and how bad they need to change on their own. They’re like a criminal whos never done whats right and keeps getting arrested, never learned, and are a detriment to the mobile world.

  • JLP474

    When you’re 30 BILLION in debt and still greedy lol

    • The Swami

      i can’t believe Softbank, this is like a golden parachute, or you can keep going as-is today and lose more money. they have no future. none. outside of a merger. they should be happy to get 5 cents on the dollar for what they bring to the table.

      • Sean Sorlie

        Exactly. They have nothing to stand on but a pile of debt.

  • Joseph Ferraro

    If Softbank has controling interest, I will be switching carriers!!

    • Brandon

      I will quick fast and in a hurry

  • ” J.D. “

    I told you its like their planing to attack from inside and destroy T – Mobile like they did nextel / I think we should all start voiceing your opinion at sprint verbely and otherwise They are hated badly and loseing customer’s by record Numbers & sinking feather in debt everyday…

  • Sharti24

    Sprint tried bluffing by threating to call off the merger. Theyre just playing the game trying to capitalize on what they feel theyre worth and tmobile isnt buying it. Expect this merger to happen folks

    • Trevnerdio

      I highly doubt DT would be stupid enough to let go of their US company that is doing pretty darn well for themselves, as of late.

    • Tony Chen

      dt already said they wont give away majority control of t mobile like ever.

    • Brandon

      Sprint is only worth $5 and a bag of nickels

  • Durandal_1707

    Kill it with fire!

  • disqus_y5DBL7L9WW

    Alone, Tmobile nor Sprint can grow enough to make a dent in ATT/Verizon customers. Without this merger both suck. TMO’s network is as mediocre as Sprint’s so the merger is a win-win for both companies. Customer pricing and employees will be the big losers.

    • Sharti24

      Exactly

    • bkat11

      So much hate!

      • disqus_y5DBL7L9WW

        How is his hate? Just making comments based on my observations.

        • bkat11

          Maybe T-Mobile sucks where you are…maybe it doesn’t but its fantastic in FL! They have 2 years to get their 600mhz network up and running and they are chipping away at Verizon/ATT slowly and methodically. For every one person I hear spewing hate about T-mobile I see 10 loving it. So my question is if you hate them so much why are you here?

        • disqus_y5DBL7L9WW

          I see, this isn’t a forum for discussion. It’s a love fest for a subpar network that is good in a few places. Definitely not in Washington DC area. Last I heard I have as much right as anyone to be here. I’m investigating investments.

        • bkat11

          You’re “investigating investments” on a fan blog? Gtfo LOL

        • disqus_y5DBL7L9WW

          Yep. Definitely not a fan of either network.

        • bkat11

          You sound like a loser looking for attention…and I’m giving it to you. Ugh

        • disqus_y5DBL7L9WW

          And you sound like a troll who doesn’t like a solid discussion that doesn’t agree with your own.

        • bkat11

          Sprint sucks…T-Mobile sucks…yeah solid discussion

        • disqus_y5DBL7L9WW

          Sprint sucks … T-Mobile is great in your neighborhood in FL … 9 of 10 people on a fan blog approve of T-Mobile. As solid a discussion as yours.

    • Tony Chen

      we dont need sprint our t mobile gains millions 0f subs each quarter. we aRE FINE WITHOUT SPRINT LOL BUT IM NOT SURE ABOUT SPRINTS FUTURE

      • Bklynman

        Sprint is going down in flames.

  • Because, you know, him being a decision maker has worked SO well for Sprint. Maybe he can even keep his pet Marcelo around too.

    • BobbieDooley

      I agree. Normally, a good company would attempt to fix issues with the company before taking on additional debt and acquiring more companies. I haven’t seen anything from Sprint that indicates it’s open to changing its business model.

      Also today in the news, it was suggested Charter/Softbank may merge. I cringe at that idea as well. Charter doesn’t have contract rateplans. Sprint uses contract rateplans to tell customers how much the bill is, and how long it’ll be before they can change companies. In Denver, Sprint has only 1 engineer on-staff. (To compare, T-Mobile has 17.) Today, Sprint is purposefully setup to not address coverage issues or gaps by virtue of the number of staff engineers they have.

      Lax investment into infrastructure is something often seen with firms that have HQ offices overseas. The US investment becomes a profit center for efforts the home market of the company wants to pursue. It’s not rocket science. To a point, this was exactly how Deutsche Telekom treated its US investment into T-Mobile US over two decades as well until Legere started dropping F-bombs. I don’t think he could have accomplished investment in the US any other way.

  • Nate

    If I was DT, I would not accept any deal where Sprint would have any control.

    • Francisco Peña

      truth

    • BobbieDooley

      It was reported that Masayoshi Son’s home is in Woodside, California, just near Silicon Valley area. If you do a google search, you’ll find the $117M estate.

      A purchase of such a large home so far away from the HQ office of the company he manages leads me to believe he’s not interested at all in managing Sprint or T-Mobile, but instead, he’s interested in the combined companies cashflow.