Seeking Alpha

Sprint/SoftBank deal for T-Mobile USA could happen in spring

  • The Nikkei reports SoftBank (SFTBF, SFTBY) is "in the final stages of talks" with Deutsche Telekom (DTEGY, DTEGF) regarding a deal in which 78%-owned Sprint (S -0.2%) would acquire Deutsche's 67% stake in T-Mobile USA (TMUS +1%). Sources add the deal could happen as soon as next spring, and could be worth more than ¥2T ($19.2B).
  • A ¥2T price tag for Deutsche's T-Mobile USA stake would translate into a $28.7B valuation for the #4 U.S. mobile carrier. T-Mobile USA, whose shares have risen sharply thanks to Sprint M&A rumors, currently has a market cap of $25.5B.
  • SoftBank CEO Masayoshi Son has reportedly been busy lining up financing for a T-Mobile USA bid, which is bound to be intensely scrutinized by regulators. Reuters has reported Dish (DISH +1.1%) is also thinking of bidding for T-Mobile, and wouldn't stand idly if Sprint made a move.
Comments (13)
  • go away sprint
    24 Dec 2013, 01:38 PM Reply Like
  • I agree, while consolidation seems likely, I doubt any incumbent would even begin to provide the major overhaul that U.S. telecommunications so direly need. Marrying Google Voice with this combo, on the other hand...

     

    http://bit.ly/17qlqJE
    24 Dec 2013, 03:21 PM Reply Like
  • I think the $T attempt was at $39B. I'd expect a similar price, with a similarly large fee if regulators nix it.
    24 Dec 2013, 01:46 PM Reply Like
  • lol, Soft-T-Sprint
    24 Dec 2013, 02:05 PM Reply Like
  • Government regulators have repeatedly said they do not want less than 4 wireless cell operators.
    Softbank expressing it's lack of confidence in government approval only wants to agree to a relatively small breakup fee should the merger not be approved
    25 Dec 2013, 09:54 AM Reply Like
  • So the bottom line is, "what does this mean to the price of my S"?
    25 Dec 2013, 03:51 PM Reply Like
  • I think DISH will buy a chunk of TMUS, adopt a dog in the manger attitude, drive up the acquisition price via non serious unviable bids, and then sell the stock back to Sprint/Softbank back for a very nice profit. It worked for CLWR (where DISH used debt instead of stock).
    26 Dec 2013, 09:13 AM Reply Like
  • Softbank, Sprint, Clearwire, and now T-Mobile .... Why do they have such a crummy network?
    26 Dec 2013, 09:12 PM Reply Like
  • SoftBank has an awesome network in Japan. Once the new Sprint network in the US is fully deployed it will trump AT&T and Verizon in all major markets in speed, call quality, and price.
    27 Dec 2013, 09:06 AM Reply Like
  • I have heard it before and still waiting.
    27 Dec 2013, 09:13 AM Reply Like
  • It takes time to build and upgrade a network. I have Verizon and I experience problems all of the time with their network (dropped calls, slow as heck data speeds) and I live in the second largest city in Michigan. I am switching to Sprint in the next month. People may be angry with the Sprint network speed and qualify currently, but when the network upgrades are finished Verizon and AT&T are going to lose a large amount of subs.
    27 Dec 2013, 09:17 AM Reply Like
  • I was invested in both Sprint and Clearwire and made good money on them both. I use Clear Wifi for years. I wanted a smartphone I went with Sprint. They announced they were upgrading my area (Twin Cities, MN) to 4G LTE. That and the unlimited data I signed up. Over a year ago and still 3G. Clear was similar unlimited until you start to use it. They would throttle the speeds if you went over a arbitrary amount. Granted Clear has improved but Sprint leaves much to be desired. I no longer own either and will keep both services but beware of the hype in the telecom sector.
    27 Dec 2013, 09:39 AM Reply Like
  • You are just like me. I had Clearwire service and it was slow since I was on the edge of their WiMAX range. I did dump Clearwire service after a while, but since I had the service I got interested in the stock. I made $81,467 on Clearwire stock and I have made massive gains off of Sprint stock I started buying at $2.30. After the SoftBank merger I bought more shares of S. I have made around $100,000 so far on Sprint. I agree that at the moment the network is not great, but my experience with Verizon is worse than Sprint network wise. Plus I want to have an unlimited plan and if I upgrade my Verizon phone then I lose unlimited, so back to Sprint I go.
    27 Dec 2013, 12:55 PM Reply Like
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