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Home / Business / The dreaded Sprint and T-Mobile Merger is reportedly back

The dreaded Sprint and T-Mobile Merger is reportedly back



Photo: AP

This is not dead, which can lie forever, even though T-Mobile and Sprint have only taken a few months to sneak out and renew their plans for a larger merger CNBC's report on Friday

The two companies cut their plans for a merger in November 201

7 as they were unable to reach an agreement and feared that regulators would reject the merger, leading to even less competition with the mobile giants Verizon and A & T could lead. According to CNBC, T-Mobile is closing a deal to acquire Sprint for a total value of $ 6.50 or $ 26 billion. John Legere, CEO of T-Mobile, will lead the combined company.

SoftBank, owner of Sprint, will allow the owner of T-Mobile, Deutsche Telekom, to "consolidate the company's profits," CNBC added, and is now looking forward to a smaller stake in the combined company: [19659005] would conclude several years of negotiations between the companies. The talks that were broken off last week after SoftBank CEO Masayoshi Son decided he did not want to lose control of a combined company. Deutsche Telekom will own more than 40 percent of the new company and SoftBank owns just under 30 percent.

In recent months, things have changed that have led Son to rethink, including greater synergies through lower corporate taxes People said the Sprint and rapidly changing, competitive wireless landscape that now includes cable providers, Sprint would mean.

The report mentions that the deal could be inked on Sunday but could lose unfinalized deals like these (19659004) There are many reasons why consumers are afraid of such a merger, but the simple version is: Both T-Mobile and Sprint have competed against Verizon and AT & T by offering things they did not do, such as reasonable, unlimited data plans and less hidden fees or credit checks. If they become a big player, they will have a fairer playing field with the other companies and feel less obliged to play nicely with the customers. That is, they might, for example, get by with higher fees for poorer service or introduce onerous contract terms – and when T-Mobile and Sprint merge, it would be very difficult to bring more competition to market.

Sprint has extensive 5G holdings that are well positioned for the future, but it could not get there without a merger because it burns money. CNBC also notes the pain of falling stock prices after months of rumors of inflation have fueled stock prices, and "about $ 6.50 a share for Sprint is lower than what Sprint has almost accepted in the past year," one of them said respondents. Of course, regulators could always intervene and say no to the buy-out, even though it is not clear at the end of it whether it will happen.The Ministry of Justice surprisingly opposed the generally pro-business business of the White House to antitrust intervention AT & T's proposed takeover of Time Warner, although it was ultimately unclear whether Donald Trump ordered the move in retaliation for poor reporting by Time Warner's subsidiary CNN, has been intervened against AT & T's planned acquisition of T -Mobile in 2011.

On the other hand, the FCC is now led by telecom flak Ajit Pai, who published a report last year that says "fiercely competitive market" on the phone, although the The largest four companies control around 99 percent of the market.The results of the report could help pave the way for a successful graduation.

[CNBC]


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