Sprint reportedly planning to make formal bid for T-Mobile in the coming monthsAlex Wagner - Editorial Director of News and Content
It’s been a while since we’ve heard any news regarding Sprint’s desire to acquire T-Mobile, but today a report has surfaced that claims that a formal offer from Sprint may not be far off.
Source speaking to Bloomberg say that Sprint intends to pursue its attempt to buy T-Mobile after recently meeting with banks to make debt arrangements for the deal. It’s said that Masayoshi Son, who serves as CEO of SoftBank and owns 80 percent of Sprint, will officially make an offer for T-Mobile in June or July.
So how will Sprint convince the FCC and Department of Justice that it should be allowed to buy T-Mobile after those two agencies shot down AT&T’s attempt to do the same thing? Son is expected to argue that the deal will improve the long-term health of the U.S. wireless industry. It’s also said that Sprint wants to get the deal done while the FCC and DOJ are reviewing Comcast’s acquisition of Time Warner in the hopes that the agencies will view both deals as major changes to the U.S. telecommunications industry.
Back in early February, a report suggested that Sprint and T-Mobile had decided to step back and reexamine their merger plans after U.S. government officials had hinted that they would shoot down any deal between the two. It appears that Sprint and T-Mo are now confident that they’ll be able to convince the government to give their agreement the green light, though. It seems likely that they’ll argue that they’ll be a much more formidable competitor to AT&T and Verizon together than they would be if they remained separate.
Do you think that a deal between Sprint and T-Mobile would be approved by the government?