Third And Fourth Largest U.S. Wireless Carriers To Announce Merger

Third And Fourth Largest U.S. Wireless Carriers To Announce Merger

SoftBank’s American telecommunications holding company that provides wireless services, Sprint and Deutsche Telekom’s T-Mobile are very close to carry out a merger, a major breakthrough in efforts to merge the third and fourth largest U.S. wireless carriers.

According to the reports, after the stock-to-stock merger, Deutsche Telekom AG (owner of T-Mobile) will acquire a majority stake in the combined company, while SoftBank (owner of Sprint), would own around 40 to 50 percent.

John Legere, chief executive officer of T-Mobile, under whose guidance it outperformed Sprint, is assumed to lead the combined company.

The transaction would significantly consolidate the U.S. telecommunications market and represent the first transformative U.S. merger along with significant antitrust risk to be agreed since the inauguration of U.S. President Donald Trump in January.

A successful deal would create a business with more than 130 million subscribers, just behind Verizon Communications and AT&T. Revenues would top $70 billion and the users might see a massive cut costs.



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Sprint shares were up 5 percent in afternoon trading in New York on Friday to $8.44, giving the company a market capitalization of close to $34 billion. T-Mobile shares were up 0.4 percent to $63.66, giving that company a market capitalization of around $53 billion.

SoftBank’s Son abandoned an earlier attempt to acquire T-Mobile for Sprint in 2014. Under that deal, SoftBank would have been in control of the merged company, with Deutsche Telekom becoming a minority shareholder.


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