Mobile US, Sprint Working To Salvage Merger

The two companies have been dancing around a possible merger for years, and were again in the news in recent weeks with talks of the two companies coming together after all. However, we have agreed that it is best to move forward on our own.

Sprint Corp (S.N) and T-Mobile US Inc (TMUS.O) said on Saturday they have called off merger talks to create a stronger USA wireless to rival market leaders, leaving No. 4 provider Sprint to engineer a turnaround on its own. The Wall Street Journal, citing people familiar with the offer, said that T-Mobile CEO John Legere and Sprint CEO Marcelo Claure met on Wednesday, where Legere reiterated that Deutsche Telekom didn't want the deal to fall apart. The tone of the release suggests T-Mobile and Sprint are still on pleasant enough terms, so it's not unthinkable to imagine the two to partnering in some capacity in the future. "However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance and track record".

This would be the second time an attempted merger of Sprint, controlled by SoftBank Group Corp (T:), and T-Mobile, controlled by Deutsche Telekom (DE:), has failed.


T-Mobile (70 million subscribers) and Sprint (54 million subscribers) are the nation's third- and fourth-largest wireless carriers, respectively.

Previous attempts have been made to court T-Mobile, but they appear to have run into trouble with federal overseers. With the new Trump administration, it was thought regulators might be more relaxed. Softbank CEO Masayoshi Son personally approached Charter about a merger, and talks at this point are reported to be strictly exploratory and preliminary in nature, but include a number of higher-ups from both companies.

  • Valerie Cook