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Deutsche Telekom demands $1B+ breakup fee from Sprint over T-Mobile

Deutsche Telekom (DTEGF) wants Sprint (S) to agree to a breakup fee of over $1B in the event that regulators block the latter's possible acquisition of T-Mobile US (TMUS), the WSJ reports.

The German carrier also wants Sprint to pledge to keep the T-Mobile brand and some of its management.

Deutsche Telekom's demands come after regulators implied they would view any Sprint/T-Mobile tie-up skeptically. Three years ago, Deutsche received $3B when authorities blocked the sale of T-Mobile to AT&T.

The sides are working on forging a deal in the near term, but could wait until after a government auction of wireless airwaves - which is expected in 2015 - or under a different White House administration.

The operators might have a bit more clarity next week, when the FCC is due to decide on how much spectrum carriers can hold and the rules for the spectrum auction.

Comments (5)
  • Paulo Santos
    , contributor
    Comments (27672) | Send Message
    Now that seems like a good business, shopping T-Mobile around and getting paid over and over without actually selling the thing.
    11 May 2014, 07:14 AM Reply Like
    , contributor
    Comments (4986) | Send Message
    I wouldn't offer anything.


    Sprint is about Alibaba. TMobile needs the merger far more than Sprnt. Alibaba is going to buy a massive stake in Sprint.


    M Son and Jack Ma are great friends.


    Sprint will be $25.00 in 2014.


    11 May 2014, 08:15 AM Reply Like
  • Energysystems
    , contributor
    Comments (1766) | Send Message
    Sprint is bleeding subs, and M. Son himself has begged for the deal on national television. T-Mobile is smart, realizing the fact that regulators won't sign off on a deal, and have taken advantage of the likes of M. Son and R. Stephenson. A lot of analysts saw the $T/$TMUS breakup fee as a catalyst that boosted $TMUS, not only with $$$ but spectrum. I expect a similar breakup fee put in place if M. Son continues down this path. Regulators across the board have already told him it's not going to happen. It's time for M. Son to move onto a new idea to revitalize $S.
    11 May 2014, 10:37 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4566) | Send Message
    Sprint is all cracked up now after the Softbank deal. T-mo is very gimmicky with their plan deals. I am with T-mo now, but really when your 1GB runs out, they slow you down so much your phone can't do anything. But the trickle is just enough for them to claim it's "unlimited".


    The only reason I am not with Sprint is because they do not support Windows phone and bent over to Apple's will getting raped by an unreasonable subsidy price.
    11 May 2014, 09:49 AM Reply Like
  • loasporter23
    , contributor
    Comment (1) | Send Message
    This merger would NOT be good for the consumers. Instead of four major cell phone carriers, it would be only three and all that means is higher prices because of less competition.
    11 May 2014, 02:10 PM Reply Like
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