Sprint, T-Mobile jump; Sprint reportedly close to getting financing

Sources tell dealReporter Sprint (S +6.5%) is close to obtaining $45B in financing for a T-Mobile USA (TMUS +3.9%) bid. Both Sprint and T-Mobile shares have spiked higher in response.

The WSJ previously reported Sprint has received proposals from at least two banks for a bid that would value T-Mobile's equity at $31B. In addition to the financing needed to acquire Deutsche Telekom's (DTEGY) 67% T-Mobile equity stake, Sprint and parent SoftBank (SFTBF) will need funds to cover (and potentially refinance) T-Mobile's $20B debt load.

The report comes as DOJ/FCC officials continue taking a skeptical view of a deal that stands to reduce the number of nationwide U.S. carriers to three.

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Comments (12)
  • Stone Fox Capital
    , contributor
    Comments (10096) | Send Message
    this doesn't get approved.. think T-Mobile is hoping for another large payout when the deal gets blocked.
    5 Feb 2014, 02:25 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (7629) | Send Message
    What if S agrees to divest some units, share spectrum etc. to get the deal done? Maybe it's not black and white...
    6 Feb 2014, 02:13 AM Reply Like
  • hhess13892
    , contributor
    Comments (745) | Send Message
    Why would they not approve? I understand the FCC wants to have 4 carriers not 3. Where will the competition to VZ & T come from otherwise?


    5 Feb 2014, 02:42 PM Reply Like
  • putzandcallz
    , contributor
    Comments (153) | Send Message
    I think Dish is going to be that 4th player. Dish has 10B in 700 MHz low-band spectrum. Is the only thing I can find on this. Since Sprint needs Dish I think Mr. Egan will play nice and lock up with Sprint with his "use or lose it Spectrum". This may be Mr. Egan's last chance to make use of this valuable Spectrum because there is a time stamp on it.... Use it or Lose it.... from the FCC. I think this would be great for Sprint and it's customers. we shall see...
    5 Feb 2014, 03:46 PM Reply Like
  • nun
    , contributor
    Comments (110) | Send Message
    DISH has already stated that buying or merging with TMUS is on the table, and has not ruled out S either.


    Stone Fox -- Don't be so sure that the government will stop the merger. That's what was said about AAL and it happened in the end.
    5 Feb 2014, 03:51 PM Reply Like
  • BigAppleGuy
    , contributor
    Comments (205) | Send Message
    The FCC and DOJ are just posturing. In all likelihood a proposed merger will eventually be approved with conditions of divesting spectrum, etc. This is an atypical merger in that it would increase innovation and competition.


    Without Sprint, TMUS will slowly die. They don't have the spectrum or money to finish what they started, and their recent aggressive promotions are going to kill whatever margins they had.


    Sprint is the only real competition against the Duopoly of Verizon and ATT. In 12-18 months or so they will be fully built out and have Spark in most markets. This is a big threat to the duopoly but do we want to wait 2 years for serious competition to develop? With a merger they can be competitive sooner. Isn't a competitive marketplace what the FCC and DOJ want? better to have 3 strong truly national carriers than to have 2 strong ones and 2 that 'also ran'.
    5 Feb 2014, 05:09 PM Reply Like
  • pdusk44
    , contributor
    Comments (3) | Send Message
    What are you talking about? There is more competition now then there ever has and it is because of the smallest carrier. Every company is reacting to tmobile. They are on the offensive. Anyone who thinks three national carriers is a fool. Just look at att and verizon they change prices to reflect each other. Now tmobile comes out of nowhere and they (att+verizon) are changing everything they are doing. Sprint already has more spectrum then anyone else. If they were as we'll managed as tmobile they could be the ones making waves. The merger would kill competition and the USA would become Canada where the government had to rule that 3 year contracts were unfair to the consumer. Everything points to a merger as bad for consumers and does nothing to help anyone but sprint. Sprint can't handle the competition so they want to buy them out. Why do you think sprint wants to buy them out it is so they don't have to compete as much and can rip off consumers. Everyone knows that what tmobile is doing is bad for the wireless industries margins. That's why if they buy them out they don't have to worry about margins dropping. Same thing att wanted to do. Anyone that thinks that is a good thing is a fool.
    5 Feb 2014, 09:03 PM Reply Like
  • hhess13892
    , contributor
    Comments (745) | Send Message
    AT&T and Verizon already control two-third of the telecom industry and Sprint's chance of giving competitive support to the industry remains low by standing solo.
    6 Feb 2014, 09:22 AM Reply Like
  • whysam
    , contributor
    Comments (12) | Send Message
    From 4 to 3 is arbitrary. What they should be looking at is competition in each wireless market. And, a larger question is why is the consumer side of this, and only in the short-term (lower prices now), more important than the long-term health of the industry itself? As in, without a merger like this, one of these two carriers with small market share is going to become insolvent. You can only compete on price with the big guy for so long.
    5 Feb 2014, 09:09 PM Reply Like
  • maximuslyricus
    , contributor
    Comment (1) | Send Message
    Profit margins are largely arbitrary as well. Whatever T-mo loses percentage-wise, it can make up in volume if consumers keep migrating to T-mo because its overall better value.


    The fat cats are more concerned with keeping their investors happy to the detriment of their customers. Indeed, a market correction has been a long time coming for the Wireless Carrier industry in America, and T-mo is leading the way, not Sprint.
    6 Feb 2014, 04:24 AM Reply Like
  • Bozstradamus
    , contributor
    Comments (2) | Send Message
    5 Feb 2014, 09:17 PM Reply Like
  • majical7th
    , contributor
    Comment (1) | Send Message
    Theirs no benefit or gain to the consumer or T - Mobile as far as a merger with Sprint. Sprint is bleeding customers & Money ,There gaining only in the complaint Dept as far as consumers screaming they have the most. right now. T-Mobile is trading at a bout 30 $ U.S. Sprint 7 $ U.S. They would only drag T-Mobile backwards, & give themselves 6 months tops of added life .
    7 Feb 2014, 02:12 AM Reply Like
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