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T-Mobile and Sprint agree to merge, finally

T-Mobile and Sprint finally agreed to a massive telecom merger after years of negotiations punctuated by two breakups...

Posted: Apr 30, 2018 11:29 AM
Updated: Apr 30, 2018 11:29 AM

T-Mobile and Sprint finally agreed to a massive telecom merger after years of negotiations punctuated by two breakups.

The agreement would leave just three major wireless carriers in the United States and must clear antitrust regulators. The combined company, which will take on the name T-Mobile, would be positioned as a fierce competitor to Verizon and AT&T.

T-Mobile CEO John Legere, who will head the merged company, said on a conference call Sunday that the firm plans to deliver "the highest capacity network in US history."

He said the company will hire thousands of people in a bid to create a nationwide network that will position the United States as the leader in providing 5G connectivity.

A recent report from research firm Analysys Mason suggests it's China and South Korea, not the United States, that are currently leading 5G development.

The move combines the third and fourth largest wireless service providers in the nation. Sprint was valued at $26 billion based on its last closing price, and T-Mobile was last valued at $55 billion. The deal values Sprint near its latest closing share price of $6.50.

Andrew Schwartzman, an attorney who specializes in telecommunications and a professor at Georgetown Law, told CNNMoney he expects it will be "difficult" to get regulators to sign off on the merger.

Sprint and T-Mobile first discussed a merger in 2014 but scrapped it because of concerns about regulatory challenges from the Obama administration.

Schwartzman noted the deal was blocked because regulators determined that the wireless market could support four major players, and having them compete benefited consumers.

"It will be difficult to convince the Justice Department that circumstances have changed so much that it's necessary to go down to three providers," he said. "That's the major hurdle that has to be confronted."

The companies expected to have a better shot at the merger under the Trump administration.

Sprint stock tanks as T-Mobile merger said to collapse

SoftBank CEO Masayoshi Son met with Trump the month before he took office to talk up an investment in US businesses.

A few weeks later, T-Mobile's Legere said he was open to "various forms of consolidation" when asked about a potential merger with Sprint and SoftBank under the Trump administration.

Related: T-Mobile and Sprint break up, again

But last November, after much speculation, the two companies issued a statement saying they had "ceased talks."

"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own," Marcelo Claure, the Sprint CEO, said at the time.

Sprint and T-Mobile's announcement is just the latest step in an ongoing movement towards telecom consolidation. AT&T is in talks to acquire Time Warner, which owns CNN. The outcome of that $85 billion merger-in-the-making depends on a case in federal court, which is pending the decision of the judge.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 69374

Reported Deaths: 1989
CountyConfirmedDeaths
Hinds5700119
DeSoto371031
Harrison260136
Madison245569
Jackson231444
Rankin230735
Jones193159
Forrest182656
Washington170142
Lee152142
Lauderdale141592
Neshoba128892
Lamar123115
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Oktibbeha113339
Warren112535
Lowndes109239
Panola106816
Sunflower105625
Scott101120
Lafayette98719
Copiah96228
Leflore94966
Pike94037
Holmes91049
Grenada85123
Pontotoc8429
Yazoo84113
Lincoln83442
Monroe82155
Simpson80631
Leake79526
Coahoma78113
Wayne78021
Tate74330
Marshall7129
Marion68420
Union66216
Adams63225
Winston62916
Covington62214
George5956
Pearl River55940
Newton54511
Tallahatchie54111
Attala52725
Walthall50221
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Alcorn4355
Calhoun4259
Prentiss42310
Claiborne40914
Smith40613
Hancock40214
Clay40114
Jasper3949
Itawamba38710
Tippah37414
Tunica3587
Clarke33626
Montgomery3295
Lawrence3238
Yalobusha31610
Humphreys29712
Quitman2691
Carroll26111
Greene25612
Perry2428
Amite2376
Webster23712
Kemper23314
Jefferson Davis2336
Wilkinson21513
Stone2115
Sharkey2045
Jefferson1957
Benton1451
Choctaw1354
Franklin1312
Issaquena272
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 100801

Reported Deaths: 1814
CountyConfirmedDeaths
Jefferson13366246
Mobile10581212
Montgomery6825151
Madison546934
Tuscaloosa426979
Unassigned392566
Baldwin367029
Shelby333437
Marshall319438
Lee270847
Morgan241819
Etowah218034
DeKalb183414
Calhoun181918
Elmore176039
Walker154465
Houston142813
Russell13892
St. Clair136320
Limestone135913
Dallas133624
Franklin129722
Cullman123012
Colbert121517
Lauderdale119020
Autauga116222
Escambia108817
Talladega105414
Jackson10264
Tallapoosa87579
Chambers84738
Dale84329
Clarke82610
Chilton8189
Blount8165
Butler77036
Coffee7656
Covington74021
Pike7137
Marion58226
Barbour5796
Lowndes57124
Marengo56616
Hale48526
Bullock48111
Winston45711
Perry4454
Bibb4445
Washington44412
Wilcox43410
Monroe4236
Pickens4089
Randolph40211
Conecuh39310
Sumter36618
Lawrence3542
Macon33914
Crenshaw3326
Choctaw28912
Cherokee2768
Clay2675
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Henry2643
Greene25211
Lamar2302
Fayette2235
Cleburne1291
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