Deutsche Telekom may be thinking about taking its relationship with T-Mobile to the next level. A new report says the German telecom giant is exploring a full combination with T-Mobile, a move that could reshape both companies under one larger structure.

According to a Bloomberg report, Deutsche Telekom is considering a new holding company that would acquire the stock of both Deutsche Telekom and T-Mobile. The combined company could then pursue a stock market listing in the U.S. as well as on a major European exchange.

That may sound like a huge step, and it is. The report says a deal like this could create a multinational telecom giant and even rank as the biggest public M&A deal ever. But for now, this is still very early. The discussions are reportedly in the early stages, which means the plan could still fall apart or change in a major way before anything official happens.

Neither company is saying much right now. A Deutsche Telekom spokesperson declined to comment, while a T-Mobile spokesperson said the companies do not comment on speculation about corporate activity and had no specifics to share.

If the idea ever moves forward, it would not be simple. The report says the companies would likely face regulatory hurdles in both the U.S. and Germany. They may also need to promise that Germany would continue to have a major base of operations, while also making sizable investments in the U.S.

The companies would also have to convince investors that one bigger international telecom business makes more sense than keeping the two companies separate. That could be a tough sell, especially when you are talking about combining two already massive businesses with different home markets and different expectations from shareholders.

Still, Deutsche Telekom’s interest in T-Mobile is not new. Deutsche Telekom spent years increasing its ownership stake in T-Mobile and reached 53% ownership in 2023. The report also pointed out that T-Mobile’s current CEO, Srini Gopalan, previously led Deutsche Telekom Germany before joining T-Mobile as COO in 2025 and later becoming CEO.

So while this latest report does not mean a deal is around the corner, it does show that Deutsche Telekom may be thinking bigger when it comes to T-Mobile. For now, though, this is something to watch rather than something T-Mobile customers should expect to feel right away.

Source: Bloomberg