Bloomberg: T-Mobile and Sprint close to finalizing buyout deal

By , Jun 4, 2014

Earns Sprint Nextel

Bloomberg is reporting this afternoon that Sprint and T-Mobile are getting very close to reaching a deal for acquisition. The outlet says that the purchase, if agreed upon, will be made in about 50% stock and 50% cash, but there’s no word yet on price.

Sprint has been rumored to be interested in T-Mobile for months now. The carrier, which was recently taken over by Japan’s SoftBank, has been impressed with the ‘uncarrier’ movement, and a buyout will make it more of a threat to AT&T and Verizon…

Bloomberg’s Alex Sherman has the scoop:

Sprint Corp. is nearing an agreement on the price, capital structure and termination fee of an acquisition for T-Mobile US Inc., people with knowledge of the matter said.

Sprint will offer about 50 percent stock and 50 percent cash for T-Mobile, leaving parent Deutsche Telekom AG with about a 15 percent stake in the combined company, according to the people, who asked not to be identified because the process is private. The agreement could be announced as soon as July, the people said.

Bloomberg says that the two companies are also discussing a breakup fee—an amount to be paid if the deal doesn’t go through. You’ll recall, T-Mobile received some $4 billion in cash and assets from AT&T after their buyout was turned down by regulators.

Currently, T-Mobile is the fourth largest carrier in the US with 45 million subscribers and Sprint is just ahead of it with 54 million. For comparison, Verizon has 120 million and AT&T has 108 million, so you can see how this would alter the wireless landscape.

Update: The Wall Street Journal just chimed in on the story, saying that the deal will be worth around $50 billion, with a $1 billion breakup fee.

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  • Nathan

    lol I wouldn’t even want to deal with Sprint. Sprint’s name itself is so ironic, since their data speeds are so slow.

    • Antzboogie

      One thing I love about T-Mobile is simultaneous voice and data meaning you can talk on the phone and surf the net at the same damn time. With Sprint you can not do this. I hope they dont mess this up or Im gone.

  • Tobias9413

    If this happens I might just switch to att. I don’t really mind the contract thought getting a new iPhone every year will be hard with contracts

    • Rowan09

      They have programs to upgrade every year since T-Mobile came out with JUMP. AT&T uses Next and not too sure what Sprint and Verizon call their programs.

      • Tobias9413

        I know T-mobile has jump the thing is if I buy an iPhone and pay for it before the next one can come out, I get to keep it and since their is no contract I can just go in and buy a new one. With jump I don’t get to keep it and Next is just and extra waste of money it’s almost like what, $50? If I get to keep my old iPhone instead of giving it back I can sell it and even make money off of it

      • Rowan09

        Oh ok got you.

  • Jeremy

    So what would this mean? I was planning on switching to T-Mobile when the iPhone 6 comes out but I seriously don’t want to deal with Sprint’s network if this is true…

  • Yujin

    If sprint has the balls to continue the I carrier plan and keep the tmobile CEO on then it will be a good deal if they are going to F it up then they should reconsider as people will go someplace else

  • Lordrootman

    GOOD FOR THEM SINCE I DONT REALLY CARE FOR BOTH SLOW DATA NETWORK

    • Rowan09

      Where do you live? I get 25up and 18down on average with T-Mobile in NY.

  • coLin

    This is actually a good news because it will push Verizon and AT&T to improve their network, lower their prices and innovate more. Good news for consumers!!

    • Rowan09

      AT&T will not lower there prices and Verizon and AT&T already have better networks than both companies by far. All this will do is force them to add a cheaper plan like AT&T already did with a $40 plan.

  • https://twitter.com/MrElectrifyer MrElectrifyer

    So long as they don’t disrupt T-Mobile’s uncarrier initiative…all is good.

    • Antzboogie

      Exactly or make TMobile run on Sprint’s network.

  • Rowan09

    They stopped the AT&T deal because it would hurt competition but this won’t? I understand Sprint is a smaller company when compared to AT&T, but it would mean choosing between a big 3 instead of 4.

    • Kurt

      Exactly, and that’s why I hope this get’s rejected. We need more competition. We already have too many companies running nearly as a monopoly, ie Comcast. Don’t need mobile going the same way

  • Youngthegiant

    Any one know if this will make Sprints 3G faster?