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Sprint Chairman justifies possible T-Mobile acquisition

  • Sprint (S) Chairman Masayoshi Son reasons that the rise in telecom and cable mergers should allow his company to buy rival T-Mobile (TMUS). Three big mergers have taken place in recent months with Verizon (VZ) acquiring Vodafone (VOD) for $130B, Comcast (CMCSA) buying Time Warner Cable (TWC) for $45B, and the AT&T (T) purchase of DirecTV (DTV) for $49B.
  • "Access to the Internet is currently dominated by three giants with no sizable competitor," says Son.
  • Although the company has not yet made a formal bid on T-Mobile, it looks to lay the framework for a future purchase.
  • Antitrust authorities have previously frowned on such a deal, as it would cut the number of national competitors in the wireless industry to three from four.
Comments (9)
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    why are all these other merges justified but not for tiny tmobile?

     

    ridiculous!!
    29 May, 04:51 AM Reply Like
  • warelf
    , contributor
    Comments (21) | Send Message
     
    Oh come on get your facts straight - Verizon did not buy Vodafone (VOD) they bought the 45% of Verizon Wireless owned by Vodafone for $130 billion. This did not change the competitive landscape in US wireless as Vodafone had absolutely no operational or other control over Verizon Wireless.
    29 May, 05:02 AM Reply Like
  • newnnly
    , contributor
    Comments (244) | Send Message
     
    where does SA get these people to report nonfactual information? And how do these things get past editing?
    29 May, 07:13 PM Reply Like
  • scn2k
    , contributor
    Comments (6) | Send Message
     
    The article is not factually correct that "three big mergers have taken place in recent months." The Comcast-TWC and AT&T-DTV mergers have been proposed or agreed on by the companies, but review by the FCC and FTC or DoJ have not been announced. They could approve, require concessions, or reject the mergers.
    29 May, 06:49 AM Reply Like
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    most likely require no concessions
    29 May, 06:57 AM Reply Like
  • Ruffdog
    , contributor
    Comments (1464) | Send Message
     
    Obama can still shoot them down.
    29 May, 09:27 AM Reply Like
  • User 24678813
    , contributor
    Comment (1) | Send Message
     
    I doubt that the SEC and the DOJ, using responsibly the Hirschman Index, will allow some of the proposed mergers.

     

    On the other hand, Chairman Son sees it pretty clearly: "Access to the Internet is currently dominated by three giants with no sizable competitor."
    29 May, 09:08 AM Reply Like
  • mr_dinky_dot_bomb
    , contributor
    Comments (340) | Send Message
     
    ""Access to the Internet is currently dominated by three giants with no sizable competitor."

     

    The FCC/DOJ cost T, from memory, about $4b of cash & spectrum when it prevented it from acquiring TMUS. I can't see the same FCC letting S do the same. TMUS has taken share from both T & VZ in part no doubt using the cash and assets from T. I do not think it will happen in the next two years.
    29 May, 01:01 PM Reply Like
  • mjb0909
    , contributor
    Comments (137) | Send Message
     
    Ruffdog; Obama is too busy & as many holes as Swiss cheese by dodging political "howitzers" to shoot anything down !
    29 May, 11:36 PM Reply Like
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