Kyodo Reporting that Deutsche Telekom has Accepted Softbank’s Offer on T-Mobile

May 29, 2014 - Written By Alexander Maxham

This morning, we’re hearing from Kyodo that Deutsche Telekom – T-Mobile’s parent company – has accepted an offer from Softbank to buy out a controlling stake in T-Mobile US. Now this merger has been pretty big talk lately. In fact, we’ve been hearing rumors of it for quite some time, dating all the way back to December of last year. It actually doesn’t surprise me that Deutsche Telekom had approved a deal with Softbank as they are trying to get out of the US, and have been for some time now. As the competition in their home market has really heated up, they are looking to investing more into Europe to keep up. While Deutsche Telekom had stated that they are in no rush to get out of the US market right now, they still want to get out of here.

Now we’ve also heard from the DOJ and FCC numerous times that they aren’t too keen on a merger between these two carriers. But that hasn’t stopped Masayoshi Son from attempted to persuade the feds into approving this deal. Right now this is just a rumor coming out of Kyodo. But if it is indeed true, we should be seeing an official announcement from Sprint and T-Mobile and perhaps their parent companies, softbank and Deutsche Telekom respectively, pretty soon.

Back in 2011, AT&T attempted to buy out T-Mobile and that failed. T-Mobile actually ended up gaining a bunch of their spectrum and a big wad of cash, which they used to improve their network, and it’s really came a long way since 2011. There was a report recently that T-Mobile/Deutsche Telekom wanted a $1 billion break up fee, if the merger didn’t work out. Now I’m not sure if they got that or not, but it’s likely that there is some sort of break up fee in this deal. Hopefully we’ll find out details on this rather soon.