Sprint, T-Mobile end merger talks

Randall Craig
November 5, 2017

The decision was made due to both parties being "unable to find mutually agreeable terms".

With merger talk officially through, that means T-Mobile and Sprint will have to revisit their position in a marketplace where Verizon and AT&T dwarf their wireless subscriber totals.

"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination".

T-Mobile said Saturday that while the company believed a merger with Sprint could have been beneficial for consumers, it is ultimately more confident in its ability to go it alone.

Reports from Japan earlier in the week claimed SoftBank, which owns Sprint, is set to pull the plug on a rumoured merger with Deutsche Telekom's T-Mobile over a dispute about who would control the combined company.

T-Mobile has been particularly aggressive - and successful - in challenging its two larger rivals. At this point, talk of a merger is between Softbank and Charter, rather than having direct involvement with Sprint. Nonetheless, Claure said that "we have agreed that it is best to move forward on our own". The companies dashed a previous plan to merge in 2014 after meeting resistance in Washington. But with the new Trump administration, it was thought regulators might be more relaxed about a merger.

Talks between Sprint and T-Mobile for a possible merger have come to a halt, both companies announced on Saturday, ending weeks of discussions that had the potential to reconfigure the mobile industry. Tokyo-based SoftBank had previously seemed amenable to a stock-for-stock merger that valued Sprint at or near its market price, with no premium, people familiar with the matter said last month.

T-Mobile, meanwhile, has been on a yearslong streak adding customers.

T-Mobile has seen growth in customer numbers in recent years, which many view as a reward for pioneering more customer-friendly options such as dropping two-year contracts, The Associated Press reports. "We won't stop now".

Other reports by Ligue1talk

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