T-Mobile could pay Sprint $26 billion to merge, sources say

Sprint and T-Mobile may be on track to announce a deal that would merge together the nation’s fourth- and third-largest carriers on Sunday.

CNBC reports from sources that based on an agreed upon $6.50 share valuation for Sprint, the deal would be worth $26 billion.

Masayoshi Son, chairman of Sprint parent company SoftBank, ended combination negotiations with Deutsche Telekom, majority shareholder of T-Mobile, in November for fear of losing control of a combined foreign entity. It is speculated now that Son has warmed to a deal with a lowered corporate tax rate in effect and “an increased understanding of how much 5G deployment will cost sprint.” Son also is concerned about increasing competition from landline providers getting into wireless service.

There’s some concern that the deal won’t pass regulatory muster, even under a conservative-led administration. JP Morgan suspects that the Department of Justice may sour on scrutiny as it goes after AT&T and Verizon for allegedly colluding against carrier unlocked eSIMs.

SoftBank owns just under 85 percent of Sprint while Deutsche Telekom has a little less than 67 percent of T-Mobile’s shares.

Share This Post

Watch the Latest Pocketnow Videos

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.