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A Sprint - T-Mobile merger deal may be agreed upon next week


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After discussions that went on and off last year, T-Mobile and Sprint - the third and fourth largest mobile carriers in the US - may finally be on the verge of merging. Earlier this month, the two carriers restarted merger talks, and Reuters now reports that they've made significant progress in this regard.


According to unnamed sources that have shared information with Reuters, T-Mobile and Sprint could "successfully complete deal talks" as soon as the coming week. However, sources tell Reuters there's "no certainty" that a final deal will be reached.


Deutsche Telekom and SoftBank, the majority owners of T-Mobile and Sprint, are still undecided on how they're going to exercise voting control once (and if) the deal goes through. If the deal does go through, the newly-formed company would have a bit over 127 million US wireless subscribers, thus being almost as big as Verizon (over 149 million subscribers) and AT&T (over 138 million subscribers).*
Assuming SoftBank and Deutsche Telekom agree on a deal, they'll still have to wait for US authorities to approve the merger. If that eventually happens, it will be interesting to see what name and branding the new supercarrier is going to use.

Source: https://www.phonearena.com/news/T-Mobile-Sprint-merger-deal-progress_id104443


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T-Mobile and Sprint finally agreed to a massive telecom merger after years of negotiations punctuated by two breakups.


The $26 billion merger, announced Sunday, values Sprint near its current share price of $6.50.


The tie-up would position the telecom companies as fiercer competitors to Verizon and AT&T, which have long dominated the US market.


"I'm excited to announce that @TMobile & @Sprint have reached an agreement to come together to form a new company -- a larger, stronger competitor that will be a force for positive change for all US consumers and businesses! Watch this & click through for details." said T-Mobile CEO John Legere, in a tweet Sunday.

A report that the deal was getting close drove up Sprint (S)'s stock price by 8% on Friday and T-Mobile (TMUS)'s price edged up as well. The stock price for SoftBank (SFTBF), a Japanese conglomerate with a majority stake in Sprint, rose by 3%.


Sprint and T-Mobile first discussed a merger in 2014 but scrapped it because of concerns about regulatory challenges from the Obama administration.


The companies expected to have a better shot at the merger under the Trumpc administration.


Sprint stock tanks as T-Mobile merger said to collapse


SoftBank CEO Masayoshi Son met with Trump the month before he took office to talk up an investment in US businesses.


A few weeks later, T-Mobile's Legere said he was open to "various forms of consolidation" when asked about a potential merger with Sprint and SoftBank under the Trump administration.


But last November, after much speculation, the two companies issued a statement saying they "have ceased talks."


"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own," Marcelo Claure, the Sprint CEO, said at the time.


Sprint and T-Mobile's announcement is just the latest step in an ongoing movement towards telecom consolidation. AT&T (T) is in talks to acquire Time Warner (TWX), which owns CNN and CNNMoney. The outcome of that $85 billion merger-in-the-making depends on a case in federal court, which is pending the decision of the judge.

Source: http://money.cnn.com/2018/04/29/news/companies/t-mobile-sprint-merger/index.html

Source: https://allfor5g.com/

Source: http://variety.com/2018/digital/news/sprint-t-mobile-merger-announced-1202791269/

Source: https://www.usatoday.com/story/tech/news/2018/04/29/t-mobile-sprint-agree-merger-americas-national-wireless-carriers-shrink-4-3/798608001/


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This merge will bring economies of scale for then and 


"The greater the quantity of output produced, the lower the per-unit fixed cost. Economies of scale also result in a fall in average variable costs (average non-fixed costs) with an increase in output. This is brought about by operational efficiencies and synergies as a result of an increase in the scale of production"




To us the consumers lower prices, I hope.


But also bring synergy among this companies and therefore less jobs, in my opinion. But it is the job of federal regulators to watch this.

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