Mobile reportedly makes Sprint new offer in an effort to save merger

Muriel Hammond
November 5, 2017

Claure said Sprint has agreed it is best to move forward on its own with "significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth".

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. "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 standalone performance and track record".

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

Both companies had expressed interest in a tie-up this year, and industry analysts expected T-Mobile to have more leverage in discussions this time around.


Instead, Sprint CEO Marcelo Claure said today in a joint statement with T-Mobile, that even though no deal was reached, both Sprint and T-Mobile see the benefits to a combination of the two wireless operators.

T-Mobile US Inc. and Sprint Corp. were reportedly on the verge of inking a deal in September, but rumors have been swirling over the last couple of weeks that negotiations had stalled.

It is still possible that Sprint will reject the new terms or decline investing any more effort into the potential merger.

Sprint has a lot of debt and has posted a string of annual losses. Now sources are back saying that T-Mobile is scrambling to save the deal, and that it has sent revised terms to Sprint in hopes that something can be worked out. After the government nixed AT&T's attempt to buy it in 2011, T-Mobile led the way in many consumer-friendly changes, such as ditching two-year contracts and bringing back unlimited data plans.

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