Sprint, T-Mobile Talks Collapse As SoftBank's Masayoshi Son Goes Alone
05 Ноября, 2017, 02:08 | Author: Boyd Miller
The chief execs of Sprint and T-Mobile both said they still see the benefits of combining but indicated the talks broke down over financial terms.
The previously proposed merger with T-Mobile was supposed to help both carriers fill gaps in coverage and increase their speed and capacity, along with allowing spectrum interlock to make 5G deployment across diversified solutions easier across the entire USA market.
"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination".
But Sprint stock stumbled Monday after a news report that its parent company, the Japanese conglomerate SoftBank, called off talks with T-Mobile about the possible merger. "However, we have agreed that it is best to move forward on our own", said Marcelo Claure, Sprint's CEO.
Because merger talks have been called off, U.S. wireless consumers will continue to benefit from competition among four nationwide carriers as T-Mobile and Sprint challenge market leaders Verizon Wireless and AT&T. Sources had originally stated that Sprint chose to call off the acquisition because Deutsche Telekom was looking to get the majority of control over the entity resulting from the merger; though some Sprint executives were reportedly okay with this, others allegedly wanted more.
In December, SoftBank CEO Masayoshi Son met at Trump Tower with then-President-elect Donald Trump, rekindling speculation that SoftBank would renew merger efforts under a Republican administration. Tokyo-based SoftBank had previously seemed amenable to a stock-for-stock merger that valued Sprint at or near its market price, with no premium, people familiar with the matter said last month. Sprint also controls the largest holding of 2.5 gigahertz airwave licenses in the US, a crown jewel that has been obscured inside a money-losing business. "We won't stop now".
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