T-Mobile and Sprint’s merger could get DOJ approval on Wednesday or Thursday, says report

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Following a report late last week that said that T-Mobile and Sprint’s deal with Dish Network was imminent, we’ve now got more info on how the deal is progressing.

Regulators have indicated to T-Mobile and Sprint that it could make a “settlement announcement” on Wednesday or Thursday of this week, or possibly even sooner, according to a report from Fox Business. This announcement would set the merger terms that the DOJ could agree with. In its announcement, the DOJ is expected to explain how the T-Mobile-Sprint merger will benefit consumers and have economic benefits for the U.S.

While the DOJ hasn’t made any official statements about the merger, there was a hint this past weekend that the DOJ’s announcement could be near. DOJ antitrust chief Makan Delrahim was scheduled to testify before a Senate antitrust subcommittee on Tuesday, but that hearing was canceled over this past weekend.

As part of the merger agreement, Dish Network is expected to purchase assets such as spectrum from T-Mobile and Sprint that would help it build a fourth competitive U.S. carrier. The three companies have reportedly come to a broad agreement, though it’s said that T-Mobile CEO John Legere and Sprint chairman Marcelo Claure are concerned that Dish chairman Charlie Ergen could turn around and sell to another company, such as Comcast or Charter, and become more of a threat to the new T-Mobile than Dish would on its own.

Another concern that Legere and Claure have about the deal is that Ergen could demand more concessions at the last minute and throw a wrench in the negotations, causing the DOJ to sue to block the deal. Recent reports have suggested that the Justice Department will sue to block the merger if an agreement with Dish isn’t reached this week.

It’s also said that there’s some renegotiation happening over the sale price of the merger. Rumors have said that the deal is worth $26.5 billion, but when T-Mobile and Sprint divest some assets, the merger won’t be worth that much.

Besides awaiting DOJ approval, the T-Mobile-Sprint merger is also facing a lawsuit from more than 10 state attorneys general who want to block the deal. They claim that the merger will lead to reduced competition and higher prices for consumers.

 

UPDATE: A report from CNBC also claims that a deal between T-Mobile, Sprint, and the DOJ on creating a fourth competitive U.S. carrier could be announced as soon as Wednesday.

Sources: Fox Business (1), (2)

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  • Fabian Cortez

    Another concern that Legere and Claure have about the deal is that Ergen could demand more concessions at the last minute and throw a wrench in the negotations, causing the DOJ to sue to block the deal. Recent reports have suggested that the Justice Department will sue to block the merger if an agreement with Dish isn’t reached this week.

    Like I previously stated, 100% in control.

  • justanormalguy13

    So, how does the state lawsuit change things? Do they have to wait until that trial goes all the way through before they can start merging?

    • Francisco Peña

      Federal trumps state. so if the Feds approve it, then the states won’t have much leg. They will probably try to take it to the 9th circuit at some point.

  • JG

    it’s said that T-Mobile CEO John Legere and Sprint chairman Marcelo Claure are concerned that Dish chairman Charlie Ergen could turn around and sell to another company,

    How long would Dish have to hold onto the spectrum until that “another company” they sell it to is New T-Mobile?

    Dish pays Sprint and current T-Mobile a collective 1 billion for x amount of spectrum… They hold onto it for 2-3 years, promising they’re working on making a new 4th carrier… Then they announce “Know what, this whole carrier thing is harder than we thought, New T-Mo want your spectrum back? It’ll cost ya 3 billion!”

    Then T-Mobile gets all of the Sprint spectrum they initially wanted and can build out a very nice nationwide 5G network.

  • RealShit

    A whole article to tell us there was a hint, and to remind us that some states will sue lol

  • Kevin

    Why don’t they divest 800 mhz spectrum, 1900 MHz spectrum, Sprint towers, Boost Mobile, backhual and equipment. So Dish would have a functional smaller network. T-Mobile can get the 2.5 GHz spectrum for 5G and Sprint’s customers they wanted.

    • Francisco Peña

      because some politicians and agencies want TMo to fully fund a competitor, which would negate the whole purpose of the merge.

    • Why would they divest 800mhz that’s crazy….

      • Kevin

        It would be nice if they divest 800 MHz to leave Dish a functional network and T-Mobile already has a lot of low band frequencies. Tmobile recently bought the 600 MHz and they also have 700 MHz.

        • 700mhz is limited it’s not nationwide. 600mhz is but it isnt gone be completely rolled out until like 2024. 800mhz is all clear and nationwide in rural areas where there is no backhaul 700mhz 600mhz and 800mhz could be com ined to give nearly 25mhz. 700mhz is so shitty because its 5mhz it’s only good for calls and texts and minor web browsing when it’s no band 2 or 4 Available. Think about it

        • Kevin

          TMobile will have to divest some spectrum for doj to approve. Of course customers want a strong 4th carrier.

    • Andy_Naija

      Why would they divest back-haul?

      • Kevin

        To leave Dish and customers with functional network. TMobile will shutdown duplicate towers later on in the area anyways, so they should sell backhual to Dish.

  • Reagan1

    Finally…it’s a done deal. Dish agreed to purchase wireless assets and gets a 7 year access agreement.

  • bman893

    Oh my God enough already more than half of these posts are about this stupid merger in the truth is they don’t even know they’re basing this off of unreliable sources when and if it happens I get it you have to write a article on it but this back and forth is really becoming annoying we don’t need an update every week on your unreliable sources that never pan out when it happens then right until then please just stop with these useless articles