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...

    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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