Ok, so here these two companies go again…. On Sunday, Sprint and T-Mobile announced plans to merge, this time in a $26 billion all-stock deal that, if it goes through, creates a worthy competitor for Verizon and AT&T. This is the third time the US’ third- and fourth-largest wireless carriers have talked about getting together.
The deal, which values Sprint near its current share price of $6.50, would create a carrier with nearly 100 million US pre- and postpaid cellphone customers, second only to Verizon. That carrier would be run by Deutsche Telekom, which owns about two-thirds of T-Mobile, and would be run by T-Mobile’s eccentric CEO, John Legere (paywall).
Sprint and T-Mobile have announced plans to combine their companies.
The deal would reshape the U.S. wireless landscape, putting the new company in stronger competition with AT&T and Verizon. Sprint and T-Mobile have tried to combine before, most recently in October, but the deal was called off. John Leger, the current Chief Executive Officer of T-Mobile, will serve as the CEO of the combined company. He and Marcelo Claure, the current CEO of Sprint, explained in an announcement video that the new company will have a “broad and deep” nationwide 5G network.
“Verizon and AT&T and Comcast and the others better watch out,” Leger said.
Reuters is reporting that Sprint parent company SoftBank is again preparing to approach Deutsche Telekom about a T-Mobile merger. Rather than talks of acquiring T-Mobile, this time it appears SoftBank is willing to “give up control” of Sprint, preparing to sell most of the company to Deutsche Telekom in order to merge the two wireless carriers. Sources told Reuters that the two companies are expected to start negotiations around April.