Merger Between Sprint and T-Mobile May be in the Works

This is a discussion on Merger Between Sprint and T-Mobile May be in the Works within the Sprint Android News forums, part of the Sprint category; Deutsche Telekom AG, the company that owns T-Mobile, is in talks to sell its T-Mobile USA unit to Sprint Nextel Corp. If the merger goes ...

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Thread: Merger Between Sprint and T-Mobile May be in the Works

  1. #1
    Editor in Chief dgstorm's Avatar
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    Merger Between Sprint and T-Mobile May be in the Works


    Deutsche Telekom AG, the company that owns T-Mobile, is in talks to sell its T-Mobile USA unit to Sprint Nextel Corp. If the merger goes through, Deutsche Telekom still wants to own a major stake in the combined company; approximately 50%. This merger is stalled at the moment because a consensus as to the valuation of T-Mobile could not be found yet. Currently, Sprint is valued at about $13.6 Billion, while T-Mobile is somewhere between $15-20 Billion.

    One other possibility discussed was for T-Mobile to buy spectrum from Clearwire, which is majority owned by Sprint, instead of a merger. Deutsche Telekom CFO Timotheus Hoettges had this to say, ”In general, all options are open in the U.S. — the sale of the whole business or of parts." He also indicated that they were not under any pressure to make it happen soon.

    This would be an interesting development in the cell phone industry if it happens. Combining the number three carrier and the number four carrier would create a more powerful entity with more market leverage to compete better with Verizon and AT&T. However, it still may not be enough to elevate either carrier into a more dominant position.

    I wonder what the resulting combined name of Sprint Nextel and T-Mobile would be?

    Source: Android.net via Bloomberg - Businessweek

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  3. #2
    Android Lurker ibap's Avatar
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    Sprint-Mobile of course!

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