Sprint and T-Mobile could merge in October
Following on from the HTC-Google transaction this week, another deal of deals could actuate next month, leading to the combination of the third- and fourth-largest carriers in the United States — one that’s been a long time in the making.
Reuters reports from its source today that “a major breakthrough” has come in talks between Sprint, T-Mobile and their parent companies, SoftBank and Deutsche Telekom. If a merger takes place, currently expected to happen in October, Sprint shareholders will own between 40 and 50 percent of the new entity while T-Mobile shareholders would take on the other share — in most cases, the majority share.
Progress on the negotiations also signal that the two believe that the deal may get regulatory approval, something that did not happen when Sprint and T-Mobile tried to merge in 2014. A shift in presidential administrations and partisan agendas could favor the desired outcome.
The transaction could still fall through, though. Sprint appears to be driving its bargaining position and has supported its position with a potential acquisition of wireline company Charter.