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Sprint +5.9%, T-Mobile +7.9% on new merger financing report

  • Bloomberg reports Sprint (S) "plans to push forward" with a T-Mobile USA (TMUS) bid after lining up financing from six banks.
  • SoftBank's (SFTBF) Masayoshi Son is expected to "make a formal bid in June or July," according to one source. SoftBank is still reportedly talking to T-Mobile parent Deutsche Telekom (DTEGF) about who would run the post-merger company; outspoken T-Mobile chief John Legere is the top candidate.
  • While past reports have suggested financing will be available - Sprint is expected to absorb T-Mobile's $8.7B in net debt in the event of a deal - DOJ officials are apparently quite skeptical about the merits of a deal to merge the #3 and #4 U.S. mobile carriers.
  • Son has previously argued he would launch a massive price war if a Sprint/T-Mobile deal was cleared, and would also offer competitive home broadband services (could be easier said than done in high-density urban areas).
  • Sprint announced yesterday it lost 333K postpaid subs in Q1. T-Mobile, which reports tomorrow, has been faring better lately.
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Comments (4)
  • Yokyok
    , contributor
    Comments (330) | Send Message
     
    go away and die sprint
    30 Apr 2014, 06:20 PM Reply Like
  • BigAppleGuy
    , contributor
    Comments (184) | Send Message
     
    Actually it is TMO that is more likely to 'go away and die' unless someone comes in and buys them. They don't have money to continue their aggressive pricing promotions and to continue investing in their network build out.
    Sprint is in the midst of a true turnaround, with a new owner who is about to have extremely deep pockets, and a plan to build a world-class LTE network including Sprint branded WIFI offloading. Sprint and TMO together would be a great company for consumers and investors alike.
    30 Apr 2014, 06:54 PM Reply Like
  • Jackson Miller
    , contributor
    Comment (1) | Send Message
     
    Well said
    30 Apr 2014, 08:57 PM Reply Like
  • The Deep Value Investor
    , contributor
    Comments (307) | Send Message
     
    I agree with BigAppleGuy. For the love of God, I hope Masayoshi Son also looks to pick up NIHD too.
    30 Apr 2014, 09:44 PM Reply Like
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