Sprint reportedly looking to value T-Mobile at $31B, receives financing offers


The WSJ reports Sprint (S) has "received proposals from at least two banks" for financing a T-Mobile USA (TMUS) bid, and envisions valuing T-Mobile's equity at $31B (compares favorably to a current market cap of $26B).

Financing, of course, is only one of several challenges Sprint would face in merging with T-Mobile. The company and parent SoftBank (SFTBF) would have to negotiate a deal for Deutsche Telekom's (DTEGY, DTEGF) 67% T-Mobile stake. They would also have to win the blessing of FCC/DOJ regulators who seem to prefer having four nationwide carriers around, and appear to be pleased with T-Mobile's aggressive pricing.

There's also the matter of Dish (DISH -2.2%), which reportedly won't stand idly if Sprint bids for T-Mobile, and could have much less trouble winning the blessing of regulators.

In addition to acquiring Deutsche's T-Mobile stake, Sprint may need to backstop a possible refinancing of ~$20B worth of T-Mobile deal.

S +2.8% AH. TMUS +2.3%.

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Comments (8)
  • JoeMRI
    , contributor
    Comments (54) | Send Message
     
    If it happens, worth $40/share.
    16 Jan 2014, 08:12 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10596) | Send Message
     
    That is probably right. We get to at least $37.50. -C
    16 Jan 2014, 11:12 PM Reply Like
  • StuckeyStocks
    , contributor
    Comments (12) | Send Message
     
    great buying opp. always thought $S was way undervalued, for a major wireless provider. love my virgin mobile galaxy s3 which runs on the sprint network.
    17 Jan 2014, 01:13 AM Reply Like
  • VernonDozier
    , contributor
    Comments (16) | Send Message
     
    Well, now that Apple quotas are set, and need to be met, let's remember how we got here...

     

    Sprint needs to figure out how to sell $20,000,000,000.00 worth of Apple iPhones. Eliminating a competitor is best so Sprint can meet the Apple Contract Quotas.

     

    Also, Sprint should be shedding assets. Maybe even sell "Virgin Mobile" to Verizon. That's a very fun brand; and Richard Branson will probably have fun at Verizon.

     

    The more networks Sprint owns, the faster Sprint can meet their Apple Quota.
    19 Jan 2014, 06:11 PM Reply Like
  • VernonDozier
    , contributor
    Comments (16) | Send Message
     
    Well, now that Apple quotas are set, and need to be met, let's remember how we got here...

     

    Sprint needs to figure out how to sell $20,000,000,000.00 worth of Apple iPhones. Eliminating a competitor is best so Sprint can meet the Apple Contract Quotas.

     

    Also, in my mind, Sprint should be shedding assets. Maybe it's time to sell "Virgin Mobile" to Verizon. That's a very fun brand; and Richard Branson will probably have fun at Verizon.

     

    The more networks Sprint owns, the faster Sprint can meet their Apple Quota.
    19 Jan 2014, 06:11 PM Reply Like
  • larrysd1
    , contributor
    Comments (20) | Send Message
     
    S or T-mo ?
    3 Feb 2014, 07:38 AM Reply Like
  • frytoos@
    , contributor
    Comments (3) | Send Message
     
    I fail to see how this merger will help Sprint in any way. Sprint has a bad reputation for buying incompatible networks. Nextel was a total loss to Sprint. Buying a GSM network is a bad idea as well. I have a prayer though. Now that Google has shed Motorola , it is time for them to buy T-Mobile. It was a big mistake buying Motorola, now that they have come to their senses, can someone nudge them to buy T-Mobile?. They have the cash to enhance T-Mobile coverage, and this will fit very well with their broadband expansion plans.
    1 Feb 2014, 01:15 PM Reply Like
  • frytoos@
    , contributor
    Comments (3) | Send Message
     
    Not a good idea. When sprint bought Nextel we all hoped that it will make Sprint great but it amounted to nothing but more headaches for Sprint. T-Mobile is an incompatible network with sprint. I fail to see how this will help sprint in any way. Now that Google has shed Motorola, I pray they buy T-Mobile. They have the cash and this will complement their broadband.
    1 Feb 2014, 01:15 PM Reply Like
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