T-Mobile and Sprint said to be finalizing merger terms as more details of the deal leak

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UPDATE: A new report from Bloomberg has a few more details on the T-Mobile-Sprint talks, claiming that the deal would value Sprint at around $24 billion. The report also claims that the current deal terms would give Deutsche Telekom a 42 percent stake and a 69 percent voting interest in the combined company.

 

ORIGINAL: Following a report that said that T-Mobile and Sprint are working to reach a merger agreement as soon as next week, more details on their negotiations have leaked out.

T-Mobile and Sprint are finalizing the terms of a merger deal and want to complete an agreement in the next three days, say sources speaking to Reuters. Under the stock exchange ratio that’s currently being negotiatied, T-Mobile parent company Deutsche Telekom would own a little more than 40 percent of the combined T-Mobile-Sprint, but will reportedly have voting control so that it can consolidate the company on its books.

The sources also caution that negotiations between DT and Sprint majority owner SoftBank could break down at the last minute.

Meanwhile, a report from The New York Times echos the claims that T-Mobile and Sprint are close to getting a deal done, saying that the two companies are in “advanced discussions” and that a merger agreement could be announced this weekend.

It’s kind of crazy to think that just a few weeks ago, there were no rumblings of any kind of T-Mobile-Sprint deal, and now here we are with the possibility that a merger will be announced this weekend. Now we’ll just have to wait and see if DT and SoftBank can actually come to an agreement this time or if the merger talks will abruptly end like they did last year.

Also worth mentioning is that even if a T-Mobile-Sprint merger agreement is reached, the deal will need to get regulatory approval before it can actually happen. Former FCC Chairman Tom Wheeler was opposed to letting the number of major U.S. carrier drop from four to three, but current FCC Chairman Ajit Pai doesn’t appear to be quite as staunchly against a reduction in U.S. carriers. “I don’t think any regulator who embraces regulatory humility and intellectual honesty about economics can say whether three or four or five is the optimal number,” Pai said in a Recode interview last year.

How do you think the current FCC and Justice Department would respond to a T-Mobile-Sprint merger?

Sources: Reuters, The New York Times, Bloomberg

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  • Hurlamania

    As long as t-mobile has control. With sprint bleeding customers that’s not a great advantage and with our 600mhz their spectrum is best to sell so the deal isn’t as great for us at this point. Plus we go from 3rd beating 4th to 3rd last…

    It’s not as lucrative as it once was. We get some subs and spectrum. Sub we are already taking. Spectrum we don’t really need. A lot of it is not compatible with current phones. On the plus side they have all the spectrum that they had plus the North Coast PCS spectrum they acquired in my area so I might get an advantage here.

  • Brenden Morris

    I’m hearing reports that the merger is a go. But those are from inside sources at Sprint. Already talks and discussion of removing Sprint logos from things as well.

    • Brenden Morris

      Nothing official yet. That’s just what I’m hearing as of now.

    • wilocrek

      What a wild claim. What sources are saying they would remove Sprint logos?

      You do realize that the proposed merger has to be approved by the FCC and that could take a year.

      No branding or logo removals would take place untill the merger is approved.

      Share your so called sources otherwise you are litetally talking out of your rear end.

      • Brenden Morris

        I never once said they are actually removing logos. I stated that there were talks and discussions going about removing the logos. Nothing is being removed now, there is just talks about logo removal. Definitely a big difference.

        • wilocrek

          Is your source some low level retail rep who is speculating or a high level executive close to the CEO?

          Otherwise your claim makes no sense and is borderline asinine.

          I cant imagine any corporate level talks are happening around removing logos. Again at least a year before that discussion would take place.

          What are your sources? Retail rep like yourself?

  • Sayahh

    I don’t like this one bit, but sometimes I wonder if this would be classified as a first-world problem…or if it’s less bad than a merger with AT&T.

  • TaskForce141

    Since Sprint is CDMA and T-Mo is GSM, and they’re not going to keep both platforms,
    which carrier’s customers will have to get new phones?
    Who do you make angry: Sprint customers, or T-Mo people?

    I’m betting the ‘Spr-interns’ are going to get the short end of the stick.
    Probably get issued a refurbished old phone from the junk drawer at T-Mobile stores, or partial credit toward a new phone ($100, $200, etc.).

    • Jared Hylton

      That’s a simple answer: Sprint’s customers will need to get new equipment. Their technology is too fragmented, and they haven’t settled on one spectrum long enough to do anything meaningful, AND CDMA is an awful technology standard in that, it pretty much is incompatible outside of North America with few exceptions. T-Mobile has a much more solid infrastructure lain, and they’re doing upgrades at the speed of light. Shutdown the Sprint 1900Mhz band immediately, refarm that over to GSM for T-Mobile for additional network congestion support, and then you grow your footprint in the old areas where Sprint used to be, and T-Mobile didn’t overlap. Then liquidate the old CDMA equipment and trudge forward build the T-Mobile 5G Network of the Future.

      • Sean sorlie

        Most phones are GSM enabled. No need for new equipment.

        • Jared Hylton

          That all depends on what equipment the Sprint people are using. VZW has all but phased out CDMA. Sprint clings to that old tech like mad. If it’s predominantly a CDMA phone with just a basic GSM chip, they won’t have any sort of data services or etc. They’re definitely making the Sprint people move over too lol. “The New T-Mobile”

        • Sean sorlie

          All the major phones have the right bands in GSM for full data. You are right that there may be cheap to mid range phones that could still be a problem but historically speaking, T-Mobile has taken care of customers in that kind of situation. Frankly it’s going to be 2 years before it’s even an issue so hopefully sprint customers make good device decisions in between.

    • Roderick Knighten

      Neither. Most CDMA phones are GSM enabled. Once CDMA gets sunset a good portion of those phones will work seamlessly on Tmobile’s current network.
      US CDMA iPhones and Galaxies already work on all 4 carriers. For both Apple and Samsung the CDMA model does double duty as a carrier phone and the SIM free unlocked version.

    • Francisco Peña

      Sprint.. even when VZW was more CDMA.. you had CDMA phones, and “sprint-phones” Sprint was their own wierdness..

    • SirStephenH

      There’s no question about it, the combined company would go GSM. Not that it will matter much because 2G and 3G won’t be around too much longer anyways. Most phones sold by Sprint are already compatable with T-Mobile’s network and they’ll also likely keep the Sprint network going for two years after a merger which means most customers will likely have a compatable phone before the switch without T-Mobile having to shell out a ton of money for discounted phones. Discounts will only apply to last minute holdouts.

      • Jared Hylton

        And honestly, if they hold out to the bitter end, I’d only let them get a $300 max price device if I were T-Mo. LoL!! Keep those subscribers moving.

  • TaskForce141

    FCC boss Pai is a Verizon plant. He will do whatever his Verizon handlers tell him to do.

    The real question is how does VZ view this strange marriage:
    a. “Sprint Mobile” becomes part of the Big Three carriers, a new big boy on the block. Does VZ like that?
    b. Or block the merger. Sprint continues being a loser, T-Mobile continues being second tier. Is the status quo more profitable to VZ?

  • TaskForce141

    Visiting the T-Mo retail store will be even more unfriendly, with hordes of ex-Sprint people demanding service and making complaints.
    Right now, T-Mo carves out its low-rent population, sending them to MetroPCS, MintSIM, and other MVNO’s.
    But with this merger, those unpleasant cheap folks will be mingling with the rest of us. Ugh.

    If you work at T-Mo retail, your life just took a turn for the worse.

    • DStudio

      Sorry, I also have an account at Sprint, and I haven’t encountered any of these “unpleasant cheap folks” there.

      I’m more concerned that Sprint has the worst everyday billing practices (although AT&T is the worst once you have a problem). I wouldn’t want to see T-Mobile retail influenced by Sprint’s policies.

    • vrm

      you sound like Nancy Pelosi talking about blacks or for that matter, any democrat talking about blacks behind closed doors.

  • Cam Fas

    Well if this deal does happen I guess we can finally get rid of 2g and HSPA asap. While Id rather have competition of 4 national carriers at the end of the day we have no say what happens and must sit back and enjoy the popcorn while the show plays out. At the minimum at least if it passes we will have more maybe a little extra coverage in sprint strong markets along with a BUTT Ton of Nation wide spectrum to add to the portfolio. I guess if it passes within 2 years of all system migrations and 600mhz continuing to be rolled out no other carrier would be able to offer service on this level. The sad thing we would loose is competition and its possible we could be subject to higher prices but like I said before we cant stop it from passing or failing regardless.

    • SirStephenH

      If anything, a massive addition of spectrum would slow down T-Mobile’s efforts to close down EDGE and 3G.

  • TaskForce141

    Both T-Mo and Sprint CEO’s were in the Hillary camp. Trump and Legere have had past disagreements, so it depends on whether the two will forgive each other.
    Trump hasn’t forgiven Amazon.

    From recode dot net:
    Article: “After opposing Trump, Sprint and T-Mobile CEOs aim to mend fences” 11/11/2016
    …T-Mobile CEO John Legere has had epic Twitter fights with Donald Trump, and Sprint CEO Marcelo Claure was a vocal supporter [and fundraiser] of Hillary Clinton…That’s despite an epic 2015 Twitter battle in which Legere complained about one of Trump’s hotels and Trump lashed back, criticizing T-Mobile’s cell service. Legere ended up checking out of the Trump hotel.

    • DStudio

      President Trump mends lots of fences. John Legere and Donald Trump are just a couple of outspoken guys with big egos. No big deal – they can make up.

      Amazon and Jeff Bezos are completely different. Bezos has implicitly endorsed the Washington Post’s political bias by turning it into the country’s premier newspaper without changing its culture. Even if unwittingly, he’s attacking the president and half the country. He needs to admit this to himself and do something about it.

      It’s not fair to compare this to Legere and Trumps’s spat, which is essentially meaningless. If the deal doesn’t go through, it’ll be for another reason.

      • MindFog2287

        Half the country? Nah. About 33%.

        • DStudio

          Yes, about half the country. Sadly, it should be much more, since such bias in “objective” reporting should upset everyone.

          The White House and Congress are majority Republican. But even when this changes it’s fairly evenly divided. So about half.

          People are afraid to upset groups that are only 2% of the population, so how does this any make sense for him at all?

        • Francisco Peña

          he won with 46% of the popular vote, just 2% off Hillary. More importantly though, he won 30 of the states… That is what you need to do.. And the reason she managed just 3M more than him was the extra 4M lead she got from voters in California. I’m sure there are some fraud numbers in that, and some cities were pushing to allow illegals to vote.. but again… he’s our president, whether or not you like it. suck it up and move on buttercup.

    • vrm

      WRT amazon, its nothing personal- read what he says about their business model and how it hurts the US economy. As president, he keeps his personal feelings aside as he has to. Almost all of SV corps worked against him so what ? As long as they haven’t done anything illegal…

      • sickofthepolitics

        As president, he keeps his personal feelings aside as he has to.HAHAHA! Thanks for that. Let us know when you are performing in a comedy club. I want to buy tickets!

        • steadymobb

          Lol yeah that one have me a laugh…

  • This has really came Out The wood Works but if This goes through tmobile Will be stronger then ever.

    • superg05

      AND PRICES WILL GO UP ON ALL NETWORKS BECAUSE OF LESS COMPETITIONS

      • If you don’t like it switch to Metro PCS. If you have a grandfathered plan nothing to worry about simple

        • superg05

          You’re kind of simple

        • I think your describing yourself flawlessly good bye

    • vrm

      HOW ? Sprint will kill t-mobile, as it has been killing itself slowly. Too much debt, too many technical issues with network compatibility and t-mobile will be dragged down by sprint financials.

      • Tmobile will have deeper pockets because they’ll have Softbank and DT. And clearly they won’t have a issue they transitioned Metro pcs flawlessly. Tmobile needs all the spectrum Sprint has to become even more competitive amd relaible.

  • Philip

    Who can stop this merge? Can the President do it? FCC can?

    • sickofthepolitics

      The President? LOL! He could give two Darns!

    • SirStephenH

      Trump!? He’d allow complete consolidation of the cellular industry down to one national carrier if given the chance.

  • lomsha

    Noooo

  • Bay_Ranger

    What we would get: higher prices. What we would lose: competition driven improvements. Nothing in this merger for the consumer, but mergers aren’t intended to help the consumer.

  • mikeZo6

    NO

  • Jake Fitzpatrick

    No! If this happens we would switch .

    • vrm

      millions will switch. Sprint brand name alone is enough to drive people off.

      • fentonr

        Yeah, the Sprint brand name is terrible. I’d hope, and expect that what they would do is have the Tmo management team take over and phase out the Sprint brand. I think that could work, but only if they keep the Tmo management team, shut down the Sprint network, transition everyone to the Tmo network and repurpose the spectrum to add to Tmo’s network. Kind of like the did with Metro PCS except with the extra step of killing the Sprint brand.

        • Sean sorlie

          This is exactly what would happen.

        • Jared Hylton

          Exactly.

    • samsung freud

      Yes, but to which provider?

      • Jake Fitzpatrick

        Well I work for Comcast. So, XFINITY Mobile.

        • Sean sorlie

          So basically Verizon? Not a good choice…

  • Reagan1

    I would prefer a Dish merger, but just get this BS over with already. DT will have majority voting control if reports are accurate, so that puts T-MO in the drivers seat. They can continue to work on their coverage more quickly as my new S9 really performs no better than my S7. So much for Band 71/Ext-LTE.

    • vrm

      What good are “voting rights” over a dumpster, because that is what the result will be ?

  • vrm

    Son is a smart cookie- he recuperated his investment in Sprint and THEN some. Plus, he retains interest in the co which he was ready to write off. If the result succeeds ( 5% chance, IMHO) then he continues to make money and if it doesn’t, well, he still made money from a lemon and he doesn’t care).

    For DT, they snatched defeat from the jaws of victory. Alternately, they killed the cash cow. If you prefer, killed the goose laying the golden egg. No other way to describe it. Germans have the WORST business sense.

  • mavricxx

    God I hope it doesn’t happen! Less competition means higher prices…

    • francob911 .

      Same this isnt good for costumers… If it happens say goodbye to unlimited data

      • randian

        That doesn’t make sense to me. Are you saying that unlimited data wouldn’t exist without Sprint?

        No, all the carriers will keep unlimited data because it gives them higher ARPU.

        • francob911 .

          Canada France went down to 3 carriers and cell phone plans spiked up … It would be similar here in the states. Probably even worse

        • RealShit

          Clenching on to my current rate plan forever, lol

    • (J²)

      Well, with the current landscape, this merger wouldn’t necessarily mean that. They’d likely continue to offer the same prices but fewer promotions as they are only targeting 2 carriers not 3 and the combined carrier would be make T-Mobile a close #3, which would put AT&T in immediate jeopardy of losing its place.

      It will likely lead to an increase in competition from rivals, who have tried to ignore the elephant in the room for awhile.

      T-Mobile would also inherit Sprint’s business customers, putting it on the map for business customers (although you might still need a magnifying glass lol).

      Also, all the spectrum that Sprint has and has failed to utilize currently due to poor management will belong to T-Mobile which would lead to even more improvements in service in the near future before 5G is rolled out.

      It’s very likely this will be approved with conditions and T-Mobile may be forced to get rid of some of the excess spectrum it acquires. This administration just doesn’t care enough to stop this merger.

      Let’s face it, “Sprint” is dead. This was never a favorite brand. The brand is notoriously known for it’s repeat failures, poor business practices and crazy identity crisis issues (at one point, the carrier didn’t know if it wanted to be a premium carrier or budget carrier) that were often disguised with promotions like “Framily” that were actually not a good deal if you read the fine print. I do not mean to bash Sprint, I just do not see a comeback on the horizon as this carrier isn’t an underdog. The M&A activity will continue until approved and completed, just saying!

      • Arysyn

        One of the wisest posts I’ve read from anyone online about this. I’ve been trying to say this to Sprint fans, who continue to think somehow Sprint’s functioning on its own while in truth Softbank keeps killing Sprint.

        Fact is, Sprint is much better off ran by T-Mobile than it is right now with Softbank and “Son”.

      • Arysyn

        Hi again, jo2

        Well, we have good news about this merger. Hopefully the Government doesn’t try to block it.

  • Brandon

    I hope and pray that this fails miserably. Sprint just needs to die out on their own.

  • Francisco Peña

    DT should take majority share AND majority vote…

  • samsung freud

    What other providers will some of you be moving to?

    • Brandon

      AT&T or Verizon

  • Victor Revilla

    Before all of you go crazy about sprint dying and only 3 “major” competitors will remain. Keep this in mind, competition is growing, not getting smaller. For example, spectrum will announce a new wireless service pretty soon. Seem intelligent right? They already have all the backbone they need to make it happen. Plus there are others that are following soon. At the end of the day it looks like this will be a 5-7 carrier fight not a 3. What T-Mobile should concentrate on is becoming an ISP / Wireless company. Add a TV service on top of that an you have a competitor that can fight on any playing field and if they pull this 5G just right, T-Mobile may start winning some battles.

    I had traveled out to the middle of nowhere and Verizon was pretty strong (New Mexico) and ISP’s come in the form of satellite dishes. Lately however more and more people are switching to T-Mobile One with unlimited hotspot and using that as their primary and only internet at home.

    With that said, I can definitely see why John wants to hit those markets first, easy to deploy long range 5G, low congestion on the towers and reaching a market desperate for attention.

    For users in the city more towers, more spectrum, more bandwidth and more customer support. And when we do decide to travel by car a wireless provider that can actually work EVERYWHERE.

    And to all those people saying they are going to jump… stop kidding yourself. There is no competitor that offers what T-Mobile does. Trust me, I’ve tried really hard to find something similar to jump and there is nothing close to what T-Mobile offers.

  • William E., III Chappell

    ……….and everyone I know wonders ‘why in the hell don’t you have a cell phone?’ 1. I have a LIFE. 2. I do NOT want or need to be ‘available’ 24/7. 3. I plan ahead and have doable/viable/reliable contingency plans. 4. I don’t like or want to be ‘tracked’ and ‘monitored’ by ANYONE, thus I have privacy. 5. I have better ways of using my hard-earned money.

    • NR552

      yet here you are, commenting on cell phone news….lmao

      • Jared Hylton

        Right? Where’s that life you were talking about?

  • Brandon

    But I’m at ease knowing that John and his team would be in the majority of everything.