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Sprint's plan to bid on T-Mobile closer to fruition

Sprint, who has been rumored to be preparing a bid for rival T-Mobile, is closer to doing so after meeting with banks in order to make debt arrangements.

CFO Joe Euteneuer and Treasurer Greg Block met with as many as six banks to structure the financing of the bid, which could be as high as $40 billion.



Sprint was recently acquired by Japan's third-largest carrier, SoftBank, and a merger of Sprint (third largest carrier in the U.S.) and T-Mobile (a close fourth) is likely just another inevitably in the ever consolidating industry.

The Federal Communications Commission and the Department of Justice will have to approve such a deal, which is not a definite. A merger would reduce costs between the giants, and expand capacity. Sprint would also have to agree to a deal termination fee, in case regulators break up the effort. When AT&T tried to acquire T-Mobile and was blocked by regulators, they had to pay $6 billion, literally paying T-Mobile to become a much stronger rival.

Sprint is the only major carrier to continue to lose subscribers, and the only carrier to report losses nearly every quarter. T-Mobile, on the other hand, has gained millions of new subscribers in the last year after ditching contracts, dropping the price of monthly bills for unlimited options, and adding free features like international roaming.

Source:
Bloomberg

Written by: Andre Yoskowitz @ 1 May 2014 22:17

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• 11 comments

• bobiroc

  LOL After they made a big stink about AT&T when it tried to do the same thing
  

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  1.5.2014 22:21 #1

• GryphB

  If Sprint is losing money, why would T-mobile(who I use) want to have them buy them out; so they can lose all their hard earned customers? Or does T-mobile just know that it won't go through and like AT&T, they will just have to pay for a lost cause?

  1.5.2014 22:23 #2

• DVDBack23

  Originally posted by GryphB: If Sprint is losing money, why would T-mobile(who I use) want to have them buy them out; so they can lose all their hard earned customers? Or does T-mobile just know that it won't go through and like AT&T, they will just have to pay for a lost cause? Hopefully. I love T-Mobile (have had for a decade) and Sprint just flat out sucks.
  

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  1.5.2014 23:01 #3

• DDR4life

  I hope this doesn't go through. I love my T-Mobile just the way it is.
  

  2.5.2014 03:56 #4

• harhumph

  Originally posted by DDR4life: I hope this doesn't go through. I love my T-Mobile just the way it is. Ditto... I see a trend, FU Sprint ;)

  2.5.2014 12:39 #5

• ChiefBrdy

  Sprint is garbage in every respect. T-Mobile is great because they are smaller. You can even speak to a live human after only 3 or 4 key presses. If Sprint buys them, I'm going back to the two-can method.

  2.5.2014 13:06 #6

• ChiefBrdy

  Somehow my post above was duplicated.

  2.5.2014 13:07 #7

• shadowfyr62

  Plus what makes no sense is that they operate on different systems - T-Mobile on GSM and Sprint on CDMA. That will be a nightmare that will take years to combine.
  

  2.5.2014 13:35 #8

• Mrguss

  Originally posted by ChiefBrdy: Somehow my post above was duplicated. Duplication happen when we post first & we don't see the post, then we post again.
  My advice:
  Post 1 time only, then refresh.
  
  Back on topic:
  No love for the very ugly duck Sprint !
  

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  2.5.2014 16:34 #9

• rtm27

  Been with T-Mobile for almost 9 years, they have given me some very good deals, and have been very helpful whenever I had issues with either coverage or their data network, including discounting my data plan for an entire month. I have had nothing but good things from them while I have been a loyal customer.
  
  Sprint.....they can go and suck on a few things that if I post here, may either be edited or may get me a suspension!
  

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  3.5.2014 23:15 #10

• DDR4life

  Originally posted by ChiefBrdy: Sprint is garbage in every respect. T-Mobile is great because they are smaller. You can even speak to a live human after only 3 or 4 key presses. If Sprint buys them, I'm going back to the two-can method. Lmao. What size and type of cans produce the best sound?
  

  6.5.2014 00:34 #11