The same day that T-Mobile announced its earnings for the summer quarter, Sprint also announced that it will be announcing earnings on October 25. The most important bit here is that it, too, will not host a conference call. In its information programming, CEO John Legere only appeared on a 7-minute video and did not take questions from investors.
Investors — read: bank analysts — usually file into the call with questions about various aspects about a company’s operations. They also ask questions about the future or even reflect speculation out loud to the executives that are expected to answer them with their own projections and ideas. With this news, no one’s able to ask questions and get immediate answers.
Backchannel reports of a merger attempt between the two national carriers, the second in four years, have been gathering foam for months. We figure that T-Mobile shareholders will get majority stake in the combined company in an all-stock transaction. Few strings would be tied to the agreement if it were to break apart. The deal was initially rumored for announcement during either company’s earnings report this quarter, but it’s since been said that it will be scheduled for next month.
Regulatory scrutiny under the Obama administration killed the first merger attempt in 2014. If and when the pair announce their combination proposal, there will be a long road to hoe yet. Stay tuned.