AH Softbank Sprint T-Mobile Merge 1.0

Rumor: Sprint Likely Won’t Be Buying T-Mobile Before The Fall

July 29, 2014 - Written By Justin Diaz

The Sprint/T-Mobile merger was at some point rumored to potentially happen before the end of the summer, but a new report from Reuters is suggesting that the deal won’t be happening any time before September. All four companies involved in this process have yet to present their case to the FCC and other regulators, and that is likely because they want to finalize and perfect their presentation as to why regulators should approve the merger before they actually present it. That will take some additional time which is possibly why we might see this deal pushed back, although we can’t say that we’re really all that surprised.

Plenty of speculation leads to the conclusion that the merger will never go through because regulators will continue to oppose it and eventually shoot the deal down. Although Sprint, SoftBank, T-Mobile, and Deutsche Telekom seem to be doing everything they can to move things along and get the decision to sway the other way. Both parent companies SoftBank and Deutsche Telekom have agreed on terms for the deal, including a total price for the buyout which consists of about $40 per share. That comes to a total amount of around $32 billion. Should the merger happen we would see the U.S. fourth largest wireless carrier, T-Mobile, become effectively part of Sprint with John Legere set to take the helm of the new merged carrier as rumors are stating.

With the added time to get the proposition in order in hopes to convince the FCC to let this deal go through, it may very well give all four companies the tools they need to make the case that this is a good thing for the industry. The merger has been in talks for quite some time already so a couple of extra months won’t be a huge difference to anyone that would be effected by the change, and if all goes well to bring up a better presentation to regulators over the merger by sometime in September, then by sometime mid next year or perhaps towards the fall of 2015 we could see a new Sprint with a brand new CEO. The FCC has for some time been a big advocate of having four large wireless carriers here in the U.S., so we wonder what could be done to convince them that a strong set of three on a more even scale would be better.