Back in 2013, we heard the rumors that Sprint might be looking to buy T-Mobile. Given that Sprint was recently acquired by Japanese carrier, Softbank, it looks like the company’s plans to expand into the US market will not be stopping there. Talks have reportedly been conducted, with Sprint’s chairman reportedly approaching banks to help fund their acquisition. Well it looks like Sprint might have been successful with the banks because according to new a new report from The Wall Street Journal, the banks are now supporting Sprint financially to go ahead and make an offer to T-Mobile for a possible acquisition.
The reports claim that at least two banks have come forward to offer Sprint financial backing of up to $50 billion, with $31 billion to cover T-Mobile’s shares, and an additional $20 billion to cover any debt they might have. Deutsche Telekom, T-Mobile’s parent company, have recently moved their stake in T-Mobile to a company in the Netherlands where there are lower taxes on asset sales. The company has denied this is a move in preparation of the sale, but that’s what’s been speculated for the moment. No doubt the merger of Sprint and T-Mobile would be a pretty big deal and great news for both companies, but we’re guessing there will be a lot of regulatory hurdles to overcome.
Several years ago T-Mobile and AT&T attempted to merge as well but due to the size of AT&T, many were worried that this would create a duopoly in the telecommunications market. This resulted in many, including Sprint, to voice their dissent, and the US Department of Justice to block the deal. Might we see something similar happen here? We guess we will have to wait and find out.