Germany’s Deutsche Telekom has a 67 percent controlling stake in T-Mobile U.S. The country’s fourth largest mobile carrier received a buyout bid from AT&T back in 2011, it was offered $39 billion, which it accepted. However the deal was blocked by regulatory authorities, and T-Mobile was compensated with roughly $7 billion in cash and spectrum. Since then, T-Mobile has become quite popular, in 2013 alone it made a number of “uncarrier” moves that brought in a lot of new subscribers. The carrier has bounced back in spectacular fashion, even after the botched deal with AT&T left its future uncertain. Deutsche Telekom CEO Timotheus Hoettges believes that the carrier is now back to the AT&T deal level, he pegs it at $42 billion.
While Hoettges didn’t comment on the rumors of a possible buyout of T-Mobile U.S. by Sprint, it could pose a challenge for the Softbank owned carrier. Sprint is reportedly looking to offer $20 billion for T-Mobile, Softbank CEO is said to have already secured financing from major banks. Deutsche Telekom thinks that its 67 percent stake in T-Mobile U.S. is now worth over double what Sprint may offer, plus both companies can’t be absolutely sure that regulatory authorities won’t block this deal for the same reason they struck down AT&T. A recent report suggests that Softbank and Deutsche Telekom have now entered direct talks to hammer out a deal for T-Mobile’s acquisition, DT is reportedly interested in an all cash deal.
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