Sprint reportedly working on deal for T-Mobile

|About: Sprint Corporation (S)|By:, SA News Editor

The WSJ reports Sprint (S +5%) could make a bid for T-Mobile USA (TMUS +7.8%) in 1H14. Both Sprint and T-Mobile shares have spiked in response.

The FCC would doubtlessly give close scrutiny to a deal that would reduce the number of nationwide U.S. carriers to three from four. But Sprint majority owner SoftBank (SFTBF) hasn't been scared to make big bets.

Both Sprint and T-Mobile's wireless subscriber bases are considerably smaller than Verizon and AT&T's, particularly with regards to corporate users. Sprint may be betting regulators will allow a deal to go through for this reason.