Sprint, T-Mobile, Might Merge Soon

Sprint, T-Mobile, Might Merge Soon

Sprint and T-Mobile are reportedly close to a deal that would see them merge into a single wireless carrier.

Different sources value the deal at either $32 billion or $50 billion. Most sources cite a price of $40 per share, which lends credence to the $32 billion figure if T-Mobile’s 802.93 million outstanding shares are purchased. As of this writing, T-Mobile shares are trading at $34.50.

A combined Sprint and T-Mobile would have approximately the same number of subscribers as each of its main rivals, Verizon Wireless and AT&T.

Sprint and T-Mobile are the third and fourth largest wireless carriers in the United States, respectively. T-Mobile’s CEO said the company was “approaching 50 million customers” as part of its first quarter 2014 earnings announcement. Sprint ended 2014 with 53.9 million subscribers.

Meanwhile, Verizon Wireless boasts 103.3 million subscribers and AT&T claims 110 million.

Both Sprint and T-Mobile have faced technological challenges in the recent past, combining wireless networks and transitioning customers. A merger would compound those challenges, because they operate differing types of mobile communication technologies.

A deal would likely be announced in July, but would still have to pass the muster of antitrust regulators.

Which wireless carrier do you use? Does size matter to you?

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