T-Mobile and Sprint end merger talks

[Jim K Global Moderator]

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So much for T-Mobile's bid to rescue a potential merger with Sprint. The two carriers have ended their not-so-secret merger talks after they couldn't find "mutually agreeable terms." Neither side is specific about what went wrong, but their remarks suggest an uneven power balance. T-Mobile's John Legere said a union was appealing for a "variety of reasons," but that a deal had to provide "superior long-term value" for a network that was already doing well on its own. Sprint had the support of its owner SoftBank, but its statement was more conciliatory; it wouldn't say much more than that it was "best to move forward on our own."

 

In practice, it might have come down to two strong-headed companies unwilling to budge on ownership ratios. T-Mobile has already explained its reasoning: why give up control when everything is coming up roses? For Sprint, however, it's a bit more complicated. SoftBank reportedly held a meeting in late October where it decided that it wouldn't cede control, putting Sprint in an awkward position where it couldn't compromise even though it didn't really have much clout.

Source:  Engadget

 

From Sprint:

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Sprint and T-Mobile End Merger Discussions

 

November 04, 2017

 

Overland Park, Kansas — November 4, 2017 —  Sprint (NYSE: S) today announced that it has ceased talks to merge with T-Mobile (NASDAQ: TMUS) as the companies were unable to find mutually agreeable terms.

 

Sprint President and CEO and SoftBank Board member Marcelo Claure said: “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. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth.  As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries.  We are determined to continue our efforts to change the wireless industry and compete fiercely.  We look forward to continuing to take the fight to the duopoly and newly emerging competitors."

 

Thank goodness ...