Sprint the famous United States telecommunication holding company that provides wireless services and is also a major global Internet carrier. It is the third largest U.S. wireless network operator as of 2013 and served 54.6 million customers at the end of the first quarter of 2014. The company in owned by Japan’s Softbank.
The Sprint Corporation has reached a deal to acquire the T-Mobile US for about US$50 billion. This is a news not from today, but from yesterday. The owners will pay about $40 per share for T-Mobile. This news is provided by the Wall Street Journal. But there is this thing that deal might fall apart, this news is again provided by the same source.
This deal would be combining the nation’s third and fourth largest mobile operators. This would be a direct threat and rival for Verizon and AT&T. Also this would reduce the mobile operators to just three companies.
If regulators rejected the deal, Sprint would have to recompense T-Mobile more than $1 billion in cash and other assets. The terms of the deal state that the T-Mobile parent company Deutsche Telekom would own 15% – 20% of the combined company.
These reports have been circulated since last year. Both carriers have struggled against the top guns of the market as each of them have half of the customers of the either companies.
The U.S. Department of Justice and Federal Communications Commission rejected an earlier attempted purchase of T-Mobile by AT&T. Since then T-Mobile has introduced plans that have changed the way U.S. carriers sell phone and services entirely. Some news suggest that federal regulators want the market to remain a four-carrier market. This would keep the market in a modest pressure.
The acquirement of T-Mobile by Sprint would be pretty hectic and out of schedule task. But nonetheless the number of acquisitions is too damn high!