T-Mobile and Sprint reportedly close to new merger terms
We’ve heard rumblings recently that T-Mobile and Sprint may be working on new terms for their merger, and now it sounds like an updated deal could be close.
T-Mobile and Sprint are said to be “close” to agreeing on a new deal and that they’re planning to announce it as soon as today. That’s according to sources speaking to the Wall Street Journal, who caution that the situation is “still fluid” and that the announcement could slip.
It’s said that the new terms of the deal will improve the exchange ratio in the all-stock deal in favor of Deutsche Telekom, T-Mobile’s parent company. DT could end up with aroun 43% of the combined T-Mobile-Sprint, up from the just below 42% it would’ve gotten under the original agreement.
T-Mobile and Sprint first announced their merger in April 2018, but the deal faced opposition from several state attorneys general that included a lawsuit. That caused the merger to be pushed back and the original merger agreement lapsed on November 1st.
A judge recently rejected the states’ lawsuit against the T-Mobile-Sprint merger, allowing the deal to continue forward. T-Mo has said that it anticipates the merger to close as early as April 1, 2020.
UPDATE: T-Mobile and Sprint have now confirmed their updated merger agreement.
Source: Wall Street Journal