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

Lynne Hanson
November 5, 2017

But in a joint statement Saturday, Sprint and T-Mobile said they are calling off merger negotiations for the foreseeable future.

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

"We've been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless", T-Mobile CEO John Legere said in the joint statement. The company had eyed the Deutsche Telekom company as a way to grow its own footprint in the U.S. and take on the two big carriers in the nation, AT&T and Verizon.

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Sprint president and CEO Marcelo Claure said: "While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination".

This would be the second time an attempted merger of Sprint, controlled by SoftBank Group Corp (T:), and T-Mobile, controlled by Deutsche Telekom (DE:), has failed. In 2014, Sprint came close to buying the company but was reportedly scared off by the threat of regulatory action. Softbank CEO Masayoshi Son personally approached Charter about a merger, and talks at this point are reported to be strictly exploratory and preliminary in nature, but include a number of higher-ups from both companies. Sprint hasn't had a profitable year in a decade, leaving a pile of credits from net operating losses that could benefit T-Mobile. But earlier this week, reports had begun to surface that talks were deteriorating.

T-Mobile, meanwhile, has been on a yearslong streak adding customers. Legal experts also said earlier this year that it was hard to predict whether the current administration would be more receptive of a deal. "We won't stop now".

Other reports by TheDailyFarc

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