T-Mobile and Sprint officially end merger negotiations

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It looks like T-Mobile’s final offer to save its merger with Sprint wasn’t enough, because the companies have ended their negotiations.

T-Mobile and Sprint announced today that they’ve ceased merger discussions after they were unable to find mutually agreeable terms. T-Mobile CEO John Legere said that while the prospect of combining with Sprint was compelling for many reasons, including creating benefits for consumers, a deal would need to result in superior long-term value for T-Mo shareholders.

Meanwhile, Sprint CEO Marcelo Claure said that his company has significant assets, including spectrum holdings, and are accelerating investments in the network to continue growth.

Here’s the full statement from T-Mobile CEO John Legere on the end of merger discussions:

“The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders. However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile’s shareholders compared to our outstanding stand-alone performance and track record.

“Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories – ultimately redefining the mobile Internet as we know it. We’ve been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless. We won’t stop now.”

And the full statement from Sprint CEO Marcelo Claure:

“While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth.

“As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries. We are determined to continue our efforts to change the wireless industry and compete fiercely. We look forward to continuing to take the fight to the duopoly and newly emerging competitors.”

It was just a month ago that rumors said that T-Mobile and Sprint were working out the final details of their merger agreement and that an announcement was weeks away. However, recent reports suggested that Sprint parent company SoftBank was unhappy with the deal, wanting a different share exchange ratio as well as to have SoftBank CEO Masayoshi Son in a decision-making role for the combined T-Mobile-Sprint entity.

Ultimately, the companies involved couldn’t come to an agreement and so they’ve decided to just end the talks altogether. Rumors have suggested that SoftBank is in talks with Charter Communications, so Sprint and SoftBank may not be done trying to strike a deal.

Source: T-Mobile

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  • JStatt

    This is not a big deal for T-Mo (and will actually motivate them to keep deploying 600mhz spectrum). But Sprint is screwed.

    • Brandon

      They will continue to lose customers and big business

  • Ty Christensen

    Haha, what a surprise, been hearing about this merger for years and every time they start negotiating it gets shot down, oh well.

  • Sprints going to die lmaooo

    • Doble-A

      We don’t necessarily want Sprint to die. Competition is always good for consumers. Keeps prices low, and innovation high.

      • Brandon

        I totally agree. But Sprint can’t survive doing what they’ve been doing. They need to get all new management

      • Sprint is going to die that’s facts. Were sacrificing quality over numbers with 4 carriers. Youll see if Sprint is a name 10 years from now. Mark my words

      • Prices low they are about to hike prices congrats! Yay competitions right

  • steveb944

    Cable company it is for Sprint then. Nice to see T-Mobile keep powering through on their own.

  • npaladin2000

    If Sprint thinks Charter is going to let them run things I’ve got a carrier I want to sell them. It’s based on a bridge in Brooklyn.

    • John Doe

      No US company will allow Masayoshi Son to run things if they buyout Sprint.

      Charter? Google? Dish? (Following Sprint in the grave) Comcast? Apple? No one will.

      The only way for Masayoshi Son to run a merged company with Sprint is if he buys that other company like Dish but guess what Softbank in over $135 BILLION in debt so I doubt he wants to spend more money.

  • lomsha

    Sprint/softbank playing hard to get when they are the ones in need. They paused talks with tmo before and went looking for other suitors. No one wants them and their issues/debt.

  • Notpoliticalyet

    These corporations need to look great on Wall Street and they will try whatever they can so the suits stay high in the hog. This merger would have pleased many execs but for the customers maybe not so much despite what John said. More competition is never bad for consumers. Meanwhile TMobile still benefiting from the failed AT-T deal with increasing coverage and coming up with great ads to lure over new customers. They’re not hurting at all. SoftBank is playing it like they have great financial backing and will continue to move forward. I bet they already have a thought that Charter will work out something with them. They do need the help more than anyone.

    • Gaius_Baltar4

      You’re forgetting that Tmobile bought MetroPCS which reduced competition since they were are growing company but gave Tmobile what it needed to change the whole industry to what it is today.

      It’s not as simple as more competitors bad and less being good.

      • Brandon

        I wouldn’t say that it was reduced competition because their r many different prepaid companies out here to choose from. But before Tmobile bout Metro PCS, their network was absolute trash.

    • Brandon

      SoftBank can have all of the money in the world, but if u don’t invest that money into Sprint’s raggedy network, then it’s u will never make a profit margin. Sprint has been on a downward spiral since 2006 and has never recovered. Sprint can go low as hell on their prices, and they still won’t get the customers that they want. They need to clean house with their management and get people who actually care about getting the job done instead of just collecting a big paycheck. Tmobile isn’t perfect by any means, but they r better than they were 5 years ago. And anyone who has had them for a long time will agree. Sprint needs to stop cutting its nose to spite their face.

  • Doble-A

    What a relief. Thank you.

  • Randall Lind

    I hope this ends it for good.

  • Mike McDonald

    I’d say if it was strictly John & Marcelo talking together a deal would’ve happened. Really looks like it was Maso and/or Softbank principals that got cold feet.

    • disqus_y5DBL7L9WW

      Not sure about cold feet but I’m glad it is dead.

  • disqus_y5DBL7L9WW

    I’m so glad for this. Love that Sprint did the pie-in-the-face to T-Mobile. Everyone acts as if Sprint needed this so badly, but T-Mobile was the one begging at the end. I’m thrilled!

    • John Doe

      Sprint’s stock says otherwise after news last week that masayoshi son rejected T-Mobile’s offer Sprint’s stock plummeted and then when news came out that they are giving another offer a go their stock bounced back and now we will find out what happens on Monday.

      • disqus_y5DBL7L9WW

        Anyone knows that stock prices are fickle. Sound business decisions shouldn’t be based on stock prices although many decisions are made to impact it. I don’t think this is one of those.

        • John Doe

          What are you talking about? This is exactly the place where stock prices do matter… investors speak with their wallets and they want Sprint to merge with another company.

          Sprint is in A LOT of debt and they are losing money quarter after quarter it is not a sound business decision to throw away a merger because you want to run things (when you were running things in the ground already)

        • Bklynman

          Well Son wanted to run Tmobile into the ground too,to keep his winning record intact.

        • disqus_y5DBL7L9WW

          Son owns 85% of Sprint stock so as the main investor, don’t you think he would have accepted tmobile’s offer if he was concerned about stock price?

        • John Doe

          No because if he did he would have lost control of the company and he doesn’t want that also he wants to buy the remaining 15%.

    • lomsha

      Lol wrong

    • Sharti24

      If tmobile was “begging” then they would have accepted the sprint offer.

    • Willie D

      Spoken like a bitter Sprint employee who’s going to be unemployed after Sprint makes more drastic cuts to stay relevant.

    • Francisco Peña

      Sprint.. Guardian of 4th place, $2B less revenues, Millions less subscribers…. and countless bad ratings of service.

      • disqus_y5DBL7L9WW

        Fewer. Geez.

        • Dummy Up Meathead

          Troll on.

        • MattPortland

          Ugh. Newbies. Can’t trust them.

        • disqus_y5DBL7L9WW

          just helping with some English here.

        • Dummy Up Meathead

          Worry about your grammar.

    • ltnstar

      True. But it’s been sprints Softbank who’s been presenting the idea, in 2014 u.s. regulators blocked any attempt. And in December it was Softbanks ceo’s who’s had meetings with Trump regarding the issue.

  • Joe2050

    This is good news. I wish the best for both companies to improve which creates a healthy competitive market for your business.

    • samsung freud

      and I wish sprint a healthy 2018, we need competition to keep consumer choices healthy.

  • Sharti24

    Wow. Ok then

  • John Doe

    T-Mobile should wait till Dish and Sprint lose a lot more customers and money then talk about a deal with either of them to BUY them.

    • Mike

      Not gonna happen ATT , Verizon, or Comcast will outbid T-mobile

      • renzo

        Google might slip in

        • Mike

          I don’t see Google doing it. If that’s the case Apple would of been done it as well.

        • renzo

          Project fi puts Google on the discussion apple we both no apple won’t buy a company 30b in the hole

      • John Doe

        AT&T and Verizon are too big they would never be allowed to buy Sprint or Dish.

        AT&T already bought DirectTV and Verizon has Fios. Comcast is also too big and would probably be denied Dish but they can buy Sprint if they are willing to take their debt.

        • Mike

          Sprints debt is stead growing. If things don’t turn around Sprint could file chapter 7 with the amount of debt it holds. Sprint will have to liquidate assets to the best bid and plan and it’s very possible for Verizon, ATT, Comcast,Dish, or T-mobile to buy Sprint get it’s spectrum and close it down.

  • Durandal_1707
  • Luis Hotdaddy Vasquez

    The best news of the century!!!!

  • Nearmsp

    This merger was never going to happen in an election year. Many jobs would have been lost in a merger, and prices would have eventually crept up due to lower competition. Sprint can improve once they stop looking for shortcuts of mergers and buyout. They need to improve their customer service and compete hard. Best service at best price. The only way to be successful.

  • pengko

    thank god!!!

  • mingkee

    Keep 4 major carriers is better for consumers.
    You cannot use Sony phone on Sprint

  • Bklynman

    Let hope Sprint the best,they turn it around come back strong,then just think if Sprint gets it act together,comes roaring back if possible,just think of the changes all the carriers would have to do. Just like if another os,had caught on,windows,foxfire os. If Sony,Nokia,Blackberry had became major players again if HTC had not shot itself in the foot like they did, You think Samsung.Lg, would be selling phones for over,$700- $900,think not.

    • ltnstar

      Sprint has had many chances to turn it around, strange after how softbank has pushed a merger for the last 3 years it is the one that walks away. Even the other carriers feel bad for sprint that they haven’t ever attacked it.

      • Bklynman

        Well just hoping they do,I am not sure how cell phone carriers handle there debt,but someone on here wrote that Sprint is $135 million in the red,not sure how they carry or anything not sure this just on paper,or if it that how much they are in the hole for real,but if so,don’t see how they can go much longer that real.

    • Brandon

      That’s a lot of wishing. Until Sprint changes their management and actually invest into the network, they will never get better

      • Bklynman

        Let hope they do,if they can,it is better for us.

        • Brandon

          I wish that I could have the same optimism as u, but with Sprint’s track record, I’m definitely not holding my breath

        • Bklynman

          No it is not optimism,I am just hoping they can turn it around,like Itnstar wrote they had many chances to turn it around. Just hoping this time they can.

          i

  • Sharti24

    Sprint is trash, always has been always will be. They have no Volte, Run only 5×5 mhz Lte in bands 25/26 and own high band spectrum that is virtually useless unless you’re 5 feet from the tower. They have fewer cell towers than tmobile and only work in major cities/suburbs. Their network will always be slow because they lease the heck out of it to mvno’s and dont get me started on this $1 per year of service crap. They made a huge mistake not trying harder to merge with tmobile and will regret it when they file for bankruptcy

    • Iceman

      Bullcrap. Sprint hasn’t always been trash.

      During the late 90’s up through their WiMax debacle, Sprint had one of the finest all digital networks around. They were often years ahead of Verizon or the other smaller CDMA carriers in terms of feature implementation.

      Then the Nextel merger happened followed by crummy management, poor marketing decisions like ASL accounts, and monumental missteps like WiMax. I’d go far as saying that when it came to their network infrastructure, Sprint was exactly like T-Mobile is today. Highly innovative and willing to be an industry guinea pig.

      My only real beef at the beginning of my time with Sprint was since they were a 100% digital network, analog roaming was terrible and expensive compared to Verizon or Alltel.

      • Sharti24

        I find it hard to believe sprint was better in the 90’s than verizon.

        • Iceman

          Verizon technically didn’t exist in the 90’s. It was Bell Atlantic & GTE before 2000. I about two hours away from Sprint’s original GSM system in DC and was in the first batch of customers on their CDMA system when it went regional before the nationwide launch.

          Verizon was very much behind in terms of cellular technology by the time Sprint had their nationwide PCS service up and running. Of course, Verizon having it’s roots in the Bell System along with the backing of Vodafone wasn’t going to remain behind for very long. They also had the advantage of having 1000’s of old AMPS sites from the various carriers they either bought or merged with.

          It was inevitable that Verizon would become the carrier that they are today and I guess I would say that it was inevitable that Sprint is where they are today as well. Leaving Sprint was a big deal for me. I had service with Voicestream and AT&T but I always held on to my Sprint service (the deep loyalty discount didn’t hurt) because I thought they would right the ship at some point.

        • Sharti24

          Good points. You must of had that sero discount plan

  • John Fees

    T Mobile will surpass verizon and a.t.t. once they get all the 600mhz towers going. they will be the only carrier to cover 100 percent of the U.S.

    • Joe

      Umm are you dreaming? Verizon is just as hard at work on their network as t-mobile and there network is still quite a bit better that t-mobile on average across the usa.

      • That’s because of rural coverage Tmobile been surpassed them in dozens of cities years ago.

        • Sharti24

          Verizon is just as strong in cities as tmobile. Remember verizon has double the customers too

        • i didnt say they weren’t but in my city Tmobile has them beat Verizon coverage sucks in some old building that they dont thats my main reason for switching back.

        • Bossman

          That is very interesting.. When it comes to coverage in buildings, Verizon usually wins in that area because of their 700 MHz spectrum. I have T-Mobile now and my in building coverage sucks.

        • Bossman

          In major cities Verizon is still king. T-Mobile may win the speed battle but coverage and capacity trumps speed.

        • Tied not king

        • Bossman

          Tied for what?

    • Mike Thaler

      It makes no sense for TM to spend the big buck$ to cover remote areas w. cellular. Let Vz. (which charges more) get those few customers. Just as it doesn’t pay to deliver internet to rural areas. As far as internet is concerned, there s/b a subsidized program to deliver internet to rural areas – the way we delivered electricity starting in the 1930’s.

  • vinnyjr

    Why would anyone pick Sprint as their 1st choice for Carrier? Only uninformed customers who read or watch a Sprint commercial would buy their service. I think ??????

    • Fabian Cortez

      “Sprint works for me.”

    • KMB877

      My friends in Cambridge (Boston), MA they have only Sprint signal at work.
      Voila.

    • Sharti24

      Price. Sprint is the cheapest of any carrier

      • Tony Chen

        SLOW ASS INTERNET SPEED DROP CALLS CONSISTenly with sprint. you have customer service in the phillipines who speak half ass english. wait time on sprint customer service is 30 miniutes to an hour. try watchin a youtuber video you get buffering from their 4g lte service. lol

  • The Swami

    just wait a year or so and bid on the spectrum at a bankruptcy auction and don’t worry about dealing with Sprint’s hideously stupid leadership, customer service team, debt, etc.

  • mikeZo6

    Amen

  • Philip

    Instead of expanding vertically, it is expanding horizontally. Of no value to either parties.

  • (J²)

    Sprint is in talks with Charter Communications? Ha!

    Charter Communications has acquired Time Warner Cable and Brighthouse and that has lead to absolutely no innovation or value for customers, in fact the opposite is the case!

    The executive team has officially gone on record to say that all customers have seen an increase on overage of $30 and that Spectrum (the new brand) does not believe in offering steep discounts or allowing retention promotions.

    Sprint is all in it for the money, not for the future of their own brand.

    • Sharti24

      When spectrum bought out time warner in my area they dropped all of time warners internet packages 2/15/20/30/50 mbps and now only have 1 plan to choose from…60mbps is $65 per month

      • (J²)

        Exactly which is overpriced considering the speeds.

        • Trevnerdio

          Hell, $10/month is overpriced for that garbage :)

      • Joe

        Exactly the same thing happend to my family. We had a good price of I think $35/month for 50mbps down and now all of the sudden we get a bill saying it’s $65 under spectrum. I am thinking of going to ATT fiber the only problem with them is that it’s a contract which I am not a fan of. Has anyone had ATT fiber and what do you think of it?

        • Sharti24

          Max speed of Att on my street is 768kbps for $30 a month lol

    • Mike Thaler

      Cable is “yesterday’s” technology. ALL the cable companies have lost customers this year. Comcast lost 125,000 this past 3rd quarter.
      Problem is that cable has a monopoly in many areas for usable internet.
      Many people are “cutting the cord” because they are tired of paying for 100+ channels (bundles) when the average household only tunes into 17.

      • (J²)

        I think you missed the point; Mergers do not lead to lower costs for consumers or innovation.

        A deal between Charter’s Spectrum and Sprint would be no different.

        There’s nothing stopping cable companies from offering TV streaming services and skinny bundles, Time Warner Cable was working on this and then they got acquired…

    • bkat11

      What better way to make America hate them even more than merge with one of the most hated cable companies in the US! I HATE SPECTRUM!!! HATE THEM!

  • Bryck

    I praise DT for exercising discipline in not agreeing to pay a significant premium for heavily-indebted Sprint and insisting on control that would have allowed it to consolidate those merged entity into its results.

    U.S. Cellular could be a better option.

    • bkat11

      I was thinking the same thing! US Cell could fill in the gaps that T-mobile is weak on until they get 600mhz rolling…it would be more of a mutual benefit to both companies and I don’t think US Cell is in as much financial turmoil as Sprint

    • Sharti24

      Maybe. They cover a small market like metro pcs did. Theyre a cdma network but have low band 700mhz which would play nice with tmobile

  • Mike Thaler

    I have a technical question.
    Many in this thread mention how TM”s expansion into the 600mz band across the country will help.
    ATT and Vz has had the advantage for years of having the low 900 band. Sprint and TM had 1900mz to start years ago.

    So – with TM having lots of 600mz available – will that give them an advantage over the carriers w. the higher 900 band?

    • Yes because 600mhz is a lower frequency then what V and AT&T has.

    • Trevnerdio

      It’ll give them a slight advantage. I heard recently on Reddit that T-Mobile utilizes more tilt than the other carriers, as to avoid overlap (waste, essentially). So while AT&T, Verizon, and T-Mobile all use ~700-730MHz, T-Mobile will have the slight edge.

      • Sharti24

        Ive noticed on Att towers that they postion the 700mhz lte antennas lower on the pole, probably due to over lapping/interference

    • Sharti24

      Att/verizon both started with 1900 and 850 mhz so yes that low band spectrum helped. In 2010 they both won 700mhz so tmobile and sprint were already behind. Europe uses 900mhz not the US

    • Chuan Ren

      Good or bad…Overall it’s good because T-Mobile is short of spectrum as compared to others. 600Mhz is not the best(700-900mhz usually is considered the gold spectrum overall which V and T have the most), but good enough to make up some coverage problem(especially inside building) and improve network performance. Lower frequency usually means better penetration, but shorter distance, so might need more towers. Higher frequency is the opposite.

      • superg05

        sorry but incorrect lower frequencies go farther and have better penetration , higher frequencies have shorter range and worse penetration but higher bandwidth

        • Chuan Ren

          You are right, thanks!

    • SirStephenH

      It’s 700 (band 12), not 900. And yes, it will give them an advantage. Verizon and AT&T were virtually given their large band 12 holdings by the government. For years they have built their networks to rely very heavily on their B12 holdings. This was good for them because they could cover more area with a less dense tower network, saving them money. It also bit them in the ass later because their sparse network wasn’t built for speed. T-Mobile didn’t have lowband until a couple years ago in the form of a small slice of band 12 so they’ve been building a denser network. B12 allowed them to fill in coverage holes in cities and greatly extend their reach (coverage) in suburbia. Because this was only a small slice of spectrum it quickly became overwhelmed and speeds dropped in areas with access to B12 only. Band 71 (600MHz) has much better penitration and distance coverage than Band 12 (700MHz), they also have much more of it than they do B12. This will lead to better speeds, coverage inside buildings, and coverage over distance. If you were to theoretically measure the speed and coverage of T-Mobile’s band 71 vs Verizon or AT&T’s band 12 from the same tower, T-Mobile would win every time.

      • Sharti24

        The difference between 600 and 700mhz propagation isn’t that drastic. T-Mobile will be running 600mhz band 71 at 10×10 mhz. The same as Att and Verizon with their band 13 700mhz

        • Arysyn

          FYI, 10×10 is the minimum spectrum allotment T-Mobile will be using of the 600mhz spectrum. It depends on the area. Some areas will be using 15×15, some 20×20, and I think there are a few areas with 25×25.

          I would like for T-Mobile and Dish to merge, as Dish has 5×5 of the 600mhz spectrum. This would boost the minimum amount of spectrum to 15×15. I think at that point T-Mobile ought to negotiate to get all areas to 20×20, then use any areas with more than that to negotiate for spectrum swap arrangements for more mid-band spectrum.

          Sprint has lots of band 41 spectrum at 2500mhz that would be great for Sprint if only Softbank would properly invest the billions of dollars needed to densify Sprint’s betwork enough to make it work. In the meantime, Sprint really could use some extra low-band spectrum which T-Mobile could trade some of the 600mhz spectrum in areas where T-Mobile has over 40mhz of, along with the 700mhz spectrum T-Mobile may not need after deploying the vastly more wideband amount of 600mhz spectrum.

          When Sprint has its network densified plenty for its band 41, Sprint won’t need much of its PCS 1900mhz spectrum T-Mobile could trade to create a 20×20 national network to go along with the 40mhz Dish has. Then figure out spectrum trades with the AWS-3 T-Mobile and Dish have, along with T-Mobile’s AWS-1, to get either at 20×20, which then would give T-Mobile three 20×20 in the mid-band, one 20×20 in the low band. That is what I’d like to see them do for streamlining their spectrum for national wideband.

        • Sharti24

          Tmobile is not deploying all their allotted 600mhz spectrum they won. They will deploy 10×10 nationwide and save some for 5G when they come to that road

        • deepdebt

          Will they be shutting down band 12 and using it for swap once they finish deploying 10×10 band 71 nationwide?

        • Sharti24

          Nope, there would be no reason to do that. They are not able to put band 12 on all towers due to them being spaced originally for 1900/2100 mhz. If they did that it would cause interference. So tmobile installed band 12 on some towers and my guess is that they will go back and install band 71 on the towers that currently dont have band 12 on them. There is no need to have band 12 and 71 on the same tower in rural areas, maybe cities for added capacity

        • Arysyn

          Thank you for the information. In that case, makes me hope more that T-Mobile considers Dish to get that extra spectrum.

  • Chuan Ren

    Good T-Mobile and its parent company DT are not that dumb…

    • Captain Insano

      T-Mobile is just trying to throw it at anyone who says hi.

  • superg05

    Translation they wanted control of the combined company even though they can’t fix there own and DT not going for that why sink there only profitable investment with a sprint controlled torpedo

  • Sprint is going to die its a matter of time they are not competitive at all.

  • SirStephenH

    “Meanwhile, Sprint CEO Marcelo Claure said that his company has significant assets, including spectrum holdings, and are accelerating investments in the network to continue growth.”

    You can put lipstick on a pig, but it’s still a pig.

    • Sharti24

      He forgot to mention how much in debt theyre in too

  • Jason

    Wouldn’t have gotten regulatory approval. Thats the real reason behind this. Somebody told them the tea leaves informally.

    • JJCommonSense

      In the trump administration it probably would have been approved..

  • frankinnoho

    BEST NEWS IN YEARS!!!!!

  • Sharti24