Sprint and T-Mobile Set to Merger

Sprint and T-Mobile are set to settle on a $26.5 Billion merger. This will still leave Verizon (111 million) and AT&T (78 million) as the two largest US carriers but it will put them right behind at 70 million users. This will undoubtedly vamp up some of the competition between these companies and hopefully us users will get some nice deals out of this. While Sprint will host nine directors to T-Mobile’s four, according to the terms, the CEO of the new combined company will be T-Mobile’s CEO John Legere. The article also states that they expect $40 billion from synergies.

This article was an interesting read, not only in the aspect in which it may affect many of us who use either of these services, but also in that it gives incite into some of the more intricate details that are involved in mergers that I honestly had never thought about before. For instance, they had to come to an agreement on a value ratio of the shares between the two companies in which a Sprint share is worth 0.10256 of a T-Mobile share.

https://www.bloomberg.com/news/articles/2018-04-29/sprint-t-mobile-said-to-agree-to-combine-in-26-5-billion-deal

One thought on “Sprint and T-Mobile Set to Merger

  1. TMobile and AT&T were actually set for a merger back in 2011 but were blocked by the Department of the Justice as well as the Federal Communications Commission because their merger would have created the largest American telephone company. In addition to their merger going directly against some anti-trust legislation, there was also consumer outcry, because the AT&T and TMobile 3G networks used different communication wavelengths. Long story short, had the merger gone through, TMobile users would’ve had to replace their phones, as they would no longer work on AT&T’s network, which they would have been forced to adapt. I am a T-Mobile customer, and while the coverage isn’t fantastic, it has been becoming more consistent as of late. I believe that T-Mobile and Sprint phones use a similar wavelength, so there customers shouldn’t be forced to buy new phones or SIM cards to properly use the new wireless network.

    Sources:
    https://www.forbes.com/sites/markrogowsky/2014/08/27/t-mobile-and-sprint-continue-to-battle-thanks-to-the-government/#119de8a31603
    https://en.wikipedia.org/wiki/Attempted_purchase_of_T-Mobile_USA_by_AT%26T

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