T-Mobile is reportedly much closer to a merger deal with Sprint – TechCrunch

Mobile


It looks like a potential merger deal between T-Mobile and Sprint, two of the major telecom companies in the U.S., is getting closer and now has set valuation terms, according to a report by Bloomberg.

The deal could be announced as soon as Sunday, according to a report by CNBC. The proposed tie-up of the two companies was called off in November last year, but now that deal appears to be coming closer, with T-Mobile’s backer valuing Sprint at around $24 billion, according to Bloomberg. As part of the deal, Deutsche Telekom AG will get a 69% voting interest on a 42% stake in the company, according to that report. (Both reports, however, disagree on the valuation — with CNBC citing a $26 billion valuation.)

This deal seems to have been a long time coming, and consolidates two of the four major telecom providers in the U.S. into one larger entity. That could, in theory, offer it some more flexibility as they expand into 5G networks. Still, a deal of this scale could still fall apart and would be subject to regulation — with significant international ownership of both companies (Softbank for Sprint, and Deutsche Telekom for T-Mobile).

Sprint shares fell more than 8% in extended trading to under $6, while T-Mobile shares were largely unchanged. Shares of Sprint were up around 8% on the day up to $6.50 in early trading.

A representative from Sprint declined to comment. A representative from T-Mobile did not immediately respond to a request for comment.



Source link

Products You May Like

Articles You May Like

Oracle open sources Graphpipe to standardize machine learning model deployment – TechCrunch
To fight the scourge of open offices, ROOM sells rooms – TechCrunch
StarVR’s One headset flaunts eye-tracking and a double-wide field of view – TechCrunch
China’s Didi beefs up its newly-independent car services business with an acquisition – TechCrunch
WeWork China rival Ucommune raises $43.5M more at a $1.8B valuation – TechCrunch

Leave a Reply

Your email address will not be published. Required fields are marked *