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Sprint and T-Mobile to merge

Old 04-27-18, 10:19 PM
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Sprint and T-Mobile to merge

Sprint, T-Mobile set to announce a $26 billion merger, sources say

T-Mobile, Sprint are near a merger that could be announced as soon as Sunday.
The deal would value Sprint at about $6.50 per share, its closing price on Friday.
A merger would still face a major challenge from U.S. regulators.


https://www.cnbc.com/2018/04/27/t-mo...6-billion.html


T-Mobile is closing in on a deal to merge with Sprint that will value Sprint near its current market price of $6.50 per share, according to people familiar with the matter.

The $26 billion deal could be announced as soon as Sunday, said the people, who asked not to be named because the negotiations are private. No deal has been signed and talks could still fall apart, said the people. The sides have agreed on an exact exchange ratio, although that figure couldn't immediately be determined.

SoftBank, which owns about 85 percent of Sprint, will allow Deutsche Telekom, which owns almost two-thirds of T-Mobile, to consolidate the new company's earnings, said the people.

A deal, if reached, would conclude several years of negotiations between the companies. Talks most recently broke off late last year after SoftBank CEO Masayoshi Son decided he didn't want to lose control of a combined company.

Several things changed over the last few months that led Son to change his mind, including greater synergies from lower corporate taxes, an increased understanding of how much 5G deployment will cost Sprint, and a rapidly changing competitive wireless landscape that now includes cable providers, the people said. Last week, Comcast and Charter, the two largest U.S. cable companies, announced an extended partnership agreement that will allow each company to develop products and services.

A deal announcement doesn't mean a merger will actually happen. Combining the third- and fourth-largest wireless U.S. providers in a market with only four participants — Verizon, AT&T, T-Mobile and Sprint — could be a hard sell for U.S. regulators. AT&T attempted to buy T-Mobile in 2011, only to have regulators block it on anti-competitive grounds.
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Old 04-27-18, 10:40 PM
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Re: Sprint and T-Mobile to merge

What is this, like the 3rd try?
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Old 04-29-18, 06:52 PM
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Re: Sprint and T-Mobile to merge

If they combine the services of T-Mobile with pricing of Sprint, I'll be happy.
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Old 04-29-18, 07:23 PM
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Re: Sprint and T-Mobile to merge

So what happens to the Sprint Center in KC and the T-Mobile Arena in Vegas? Do they merge together as well?
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Old 04-29-18, 07:41 PM
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Re: Sprint and T-Mobile to merge

It will be a long time before that happens, if at all. They still have to pass government anti-trust review, and that's no sure thing.
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Old 04-29-18, 07:46 PM
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Re: Sprint and T-Mobile to merge

Originally Posted by Decker View Post
So what happens to the Sprint Center in KC and the T-Mobile Arena in Vegas? Do they merge together as well?
I'm sure the names will be changed. Depends on what's name of the new company? I still have been using the tmobile pay as you go plan for a cell phone. I'm sure I'll probably have to change that if the merger goes through. If it was blocked before why would it happen now?
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Old 04-30-18, 12:00 AM
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Re: Sprint and T-Mobile to merge

Originally Posted by Bluelitespecial View Post
I'm sure the names will be changed. Depends on what's name of the new company? I still have been using the tmobile pay as you go plan for a cell phone. I'm sure I'll probably have to change that if the merger goes through. If it was blocked before why would it happen now?
The current FCC is a lot more friendly to corporations
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Old 04-30-18, 12:26 AM
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Re: Sprint and T-Mobile to merge

And apparently there are tax advantages to Sprint now that didn't exist before. I don't know exactly what though.

The combined company will be named T-Mobile.
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Old 04-30-18, 11:54 AM
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Re: Sprint and T-Mobile to merge

Originally Posted by Psi View Post
It will be a long time before that happens, if at all. They still have to pass government anti-trust review, and that's no sure thing.
Exactly.

Not even close to being done.

Why TMUS wants to buy a worthless company (on paper) is beyond me. And their stock is getting ripped today because of the poor decision.
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Old 04-30-18, 12:33 PM
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Re: Sprint and T-Mobile to merge

Originally Posted by Brian Shannon View Post
Exactly.

Not even close to being done.

Why TMUS wants to buy a worthless company (on paper) is beyond me. And their stock is getting ripped today because of the poor decision.
Because of the cost to deploy 5g infrastructure. There are already whispers about how safe AT&T’s dividend will be in the future because of this. Most wireless telcos already have billions in debt from 3g and 4g builds. Apparently 5g will make that look pale in comparison. My merging then have a bigger install base, more cash flow and only one network to build vs two if they were separate. I think is gets passed...eventually.

Last edited by Kdogg; 04-30-18 at 12:39 PM.
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Old 04-30-18, 01:03 PM
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Re: Sprint and T-Mobile to merge

I believe I have been with Sprint since 1999 so it will be interesting to see how this shakes out, and I certainly hope long-timers like me are offered a sweetheart deal to be able to upgrade devices early.

I would be happy to pay off the lease on my LG G6 early if a deal still made it cost-effective to pick up the G7 early (I love my G6 so I will definitely be getting the G7 next year if no deal is offered by T-Mobile).

It is odd to realize I have been with the same carrier for nearly 20 years and the red-headed step child of the big three carriers to boot.
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Old 04-30-18, 09:25 PM
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Re: Sprint and T-Mobile to merge

Originally Posted by Brian Shannon View Post
Exactly.

Not even close to being done.

Why TMUS wants to buy a worthless company (on paper) is beyond me. And their stock is getting ripped today because of the poor decision.
i would assume gaining spectrum and shared costs to deploy 5g.
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Old 04-30-18, 10:52 PM
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Re: Sprint and T-Mobile to merge

Originally Posted by Bluelitespecial View Post
If it was blocked before why would it happen now?
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Old 05-01-18, 12:01 AM
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Re: Sprint and T-Mobile to merge

I hope this means better LTE signals for T-Mobile customers like me.

AT&T wanted to buy Time Warner, but that stalled, didn't it?
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Old 05-01-18, 06:44 AM
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Re: Sprint and T-Mobile to merge

Originally Posted by Deftones View Post
i would assume gaining spectrum and shared costs to deploy 5g.
But expanding a wireless network isn’t merely a simple flip of the switch. Sprint and T-Mobile use different technology to power their 2G networks—Sprint uses CDMA technology (like Verizon) and T-Mobile uses GSM (like AT&T). The big difference between CDMA and GSM is that CDMA phones don’t have SIM cards—with the exception of newer LTE-enabled devices that need a SIM card. Nevertheless, the merged company would need to transition to one form of technology—GSM being most likely, experts said—so the change would take some time.
https://www.marketwatch.com/story/ho...ers-2017-09-20

Sprint had $32 billion in debt at the end of 2017 and lacks the capacity to borrow for additional capital spending to build out a robust 5G network. One will note that Sprint issues more press releases on wireless spectrum-backed debt than updating the market on the 5G network progress with that spectrum.
https://seekingalpha.com/article/416...oval-certainty

Good luck!
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Old 05-01-18, 06:55 AM
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Re: Sprint and T-Mobile to merge

I think Sprint will benefit from network upgrade, which they alone don't have enough money to do, and T-Mobile will gain from absorbing Sprint's spectrum bands, where they are now the weakest. But even if the deal is approved, those benefits won't be seen for several years.
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Old 05-02-18, 12:04 AM
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Re: Sprint and T-Mobile to merge

Originally Posted by Deftones View Post
i would assume gaining spectrum and shared costs to deploy 5g.
I think it's mostly a spectrum grab for tmobile. They have been trying to grab as much as possible because they decided to skip a spectrum auction in 2007 i believe, then blamed Verizon for hogging said spectrum.


Tmobile and Sprint combined would have almost 3x as much spectrum as Verizon, yet even combined, they are smaller than Verizon.

Of course Legere said that tmobile needs to hog the spectrum in order to build out 5g.

Oh and per Legere, there are 8 wireless carriers.
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Old 05-03-18, 12:28 AM
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Re: Sprint and T-Mobile to merge

This will never happen.

Unless my wife and I can get a free pair of Samsung Galaxy S9 phones.

Then it will.
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Old 05-03-18, 04:42 AM
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Re: Sprint and T-Mobile to merge

Originally Posted by D.Pham4GLTE (>60GB) View Post
The current FCC is a lot more friendly to corporations
= very bad for individuals wanting a fair shake in the telecommunications domain.
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Old 05-03-18, 05:52 AM
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Re: Sprint and T-Mobile to merge

I've been with Sprint since 2013(?) I think. When I git my first smartphone I switched to them, because they have unlimited nights and weekends, so I've been with them for about 5-6 years. The day after the merger I got an email from Sprint saying that they wanted to send me a "Sprint Magic Box," which is basically a portable cell tower that will enhance my phone and download speed by like 200%. It should get here by today or Friday and we'll see what happens.
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Old 05-03-18, 06:23 AM
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Re: Sprint and T-Mobile to merge

Originally Posted by Why So Blu? View Post
The day after the merger I got an email from Sprint saying that they wanted to send me a "Sprint Magic Box," which is basically a portable cell tower that will enhance my phone and download speed by like 200%. It should get here by today or Friday and we'll see what happens.
I'm not sure if that's a coincidence, but T-Mobile has been offering that for 2-3 years. They used to promote it heavily back in the days when their coverage was a lot weaker. I don't know if it's still available now, but you have to ask for it.
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Old 06-05-18, 02:28 AM
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Re: Sprint and T-Mobile to merge

Originally Posted by Psi View Post
It will be a long time before that happens, if at all. They still have to pass government anti-trust review, and that's no sure thing.
I can only think of it as a humorous joke
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