Sprint and T-Mobile call off merger discussions

By Pouyan Broukhim

After weeks of ongoing speculation over a potential merger amounting between Sprint and T-Mobile, the companies revealed that discussions have ended, having failed to come to a mutual agreement.

“The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders,” said John Legere, President and CEO of T-Mobile US.

“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 stand-alone performance and track record.”

See also:

The two companies had planned to merge in order to rival both Verizon and AT&T – the two front runners in wireless communications in the US.

Both T-Mobile and Sprint have less than 70mn subscribers on their networks, whilst AT&T and Sprint both have over 130mn. In this sense, the move would have seen a merger company becoming a third key performer in wireless communications.

However, despite the failed talks meaning that this won’t come to fruition, Sprint’s President, Marcelo Claure, has not ruled out a potential merger with other firms in the near future.

“While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination,” Claure said.

“As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries. We are determined to continue our efforts to change the wireless industry and compete fiercely. We look forward to continuing to take the fight to the duopoly and newly emerging competitors.”

Share

Featured Articles

Broadridge study reveals huge impact of AI on C-suite

Broadridge Financial Solutions spoke to 500 C-suite executives from across the globe, many of whom said AI was significantly changing the way they work

PwC's Kathryn Kaminsky – the role of boards on social issues

As Vice Chair Trust Solutions Co-Leader at PwC, Kathryn Kaminsky says boards play an important role in helping businesses take action on social issues

Why your business needs a Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 top AI and ML trends for the enterprise in 2023 – Dataiku

Technology & AI

From NYC to Hong Kong, the rise of the private members' club

Leadership & Strategy

Meet the CEO: Jill Stelfox of Panzura, exclusive interview

Leadership & Strategy