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Sprint/T-Mobile Merger: T-Mobile to get $2 Billion if Blocked, T-Mobile Brand Remains

June 13, 2014 - Written By Alexander Maxham

Some new, news coming out today about the Sprint and T-Mobile merger we’ve been hearing a lot about lately. Many of us are still skeptical about it actually going through, given that the FCC has said they want four carriers, and this would consolidate it down to just three. But it would be a stronger three, at least in theory. However, Sprint and T-Mobile have not officially announced a deal just yet. So we’re still waiting for all that information. And then the FCC and DOJ will look at either approving or blocking the deal. When AT&T attempted to buy T-Mobile a few years ago, Deutsche Telekom had put in a pretty big breakup fee, which was over a billion and included quite a bit of spectrum from AT&T. Which T-Mobile has used that cash and spectrum to get their network to where it is today. We’re hearing today from a CNBC report that DT and T-Mobile would get about $2 billion if the deal is blocked. Which is about twice the amount that was reported a few weeks ago.

Additionally, we’re hearing that if the deal does go through, the T-Mobile brand would stick around and so would John Legere and his Magenta Batman background. Which we had heard this before, that John Legere would be the CEO of a combined Sprint/T-Mobile, and Sprint’s current CEO Dan Hesse would be on the board of directors. Which is strange since the last two rumors and reports we had seen pointed at the company being named Softbank USA, and not using the T-Mobile brand, but using both T-Mobile and Sprint’s colors. However it does coincide with the rumors of John Legere sticking around and being the CEO. That rumor we’ve heard numerous times already.

As we stated earlier, nothing is set in stone, approved or even confirmed yet. So take all of this with a big grain of salt.