CEOs of Sprint and T-Mobile talk a new offer, merger on lifeline
Sources to The Wall Street Journal say that T-Mobile CEO John Legere talked with Sprint CEO Marcelo Claure about a new offer in order to merge the nation’s third- and fourth-largest cellular service providers.
Masayoshi Son, the chairman of Sprint and its parent company SoftBank, had been skeptical of going through with a previous arrangement that would allow for him and Tim Hoettges, CEO of T-Mobile’s parent Deutsche Telekom, to co-chair the new entity, but would give essential control to Deutsche. The main issue is with Sprint’s market value which, at $25.7 billion, is just over half the nearly-$50 billion capitalization of T-Mobile US.
Representing his parties, Legere expressed the overture that his side did not want this deal to fail. No terms of this new offer were disclosed by the sources.
Sprint and T-Mobile called off a merger in 2014 after facing strong regulatory headwinds.