Sprint and T-Mobile deal with each other for M&A talks

It seems that Sprint and T-Mobile are each other’s first preferences for a merger or acquisition as Bloomberg reports that the companies’ executives have held informal talks about a deal.

Well, maybe that isn’t a fair conclusion to draw as a “deal” could expand to moves of lesser stakes or agreements in the pursuit of a suitor, but nothing was divulged by the sources who are “familiar with the matter.”

Things have been quiet on the M&A front until recently because of an FCC-mandated quiet period for the duration of its 600MHz spectrum auction.

Sprint’s failed attempt to acquire T-Mobile in 2014 faced heavy regulatory scrutiny over anti-competitive concerns. However, with a pro-business president in office, the environment for consolidation looks to be warmer this time around. The dynamics have changed as well: T-Mobile took Sprint’s third-place spot for subscriber count last year. Sprint’s and T-Mobile’s largest stakeholders, SoftBank and Deutsche Telekom respectively, have both informed investors of their openness to consolidate (not necessarily with each other).

T-Mobile CEO John Legere has expressed interest on multiple occasions for offers, though as AT&T and Verizon have taken a media tack to their recent acquisitions, the exec could see a pure cellular route to counter “Dumb & Dumber”. Meanwhile, SoftBank CEO Masayoshi Son was rumored to have been mulling giving up equity in a Sprint/T-Mobile merger to make a deal more appealing.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.