Seeking Alpha

Report: DT accepts SoftBank/Sprint offer to buy T-Mobile

  • Japan's Kyodo news agency reports Deutsche Telekom (DTEGY) has signed off on a SoftBank (SFTBF)/Sprint (S) bid to acquire its 67% stake in T-Mobile USA (TMUS).
  • DT has previously suggested it's open to a deal as SoftBank/Sprint worked to line up financing - in addition to T-Mobile's equity, a deal has to account for $8.7B in net debt.
  • But all signs suggest regulators remain wary of a tie-up lowering the number of nationwide U.S. mobile carriers to three, in spite of Masayoshi Son's relentless PR efforts.
  • TMUS +1.6% premarket. S +2.5%.
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Comments (10)
  • jbound
    , contributor
    Comments (110) | Send Message
     
    If everyone is being honest, it is indeed a duopoly as it currently stands. Neither TMUS nor S can play with the big dogs and survive long-term. Things may get interesting with real competition from a strong third player.

     

    Two strong incumbents and two also-rans doth not a serious market make.
    29 May 2014, 09:43 AM Reply Like
  • BigAppleGuy
    , contributor
    Comments (183) | Send Message
     
    Pretty clear 'together we stand divided we fall' moment here. Ultimately the FCC has to find their piece and the DOJ will let it happen. IMHO good for shareholders and the market. Isn't this a rare true win-win?
    29 May 2014, 10:03 AM Reply Like
  • jbound
    , contributor
    Comments (110) | Send Message
     
    Pretty clear 'together we stand divided we fall' moment here.
    Ultimately the FCC has to find their piece and the DOJ will let it happen. IMHO good for shareholders and the market.
    Isn't this a rare true win-win?

     

    Sorry but for me, not a single sentence makes any sense.
    29 May 2014, 10:14 AM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4752) | Send Message
     
    Sprint = $25.00 in 2014.

     

    Lahiem
    29 May 2014, 10:08 AM Reply Like
  • jbound
    , contributor
    Comments (110) | Send Message
     
    Sprint = $25.00 in 2014.

     

    ....that would surprise me and a lot of other people I would imagine. Not going to happen this year, you are better off treasure hunting for misplaced Easter eggs..
    29 May 2014, 10:41 AM Reply Like
  • skibimamex
    , contributor
    Comments (467) | Send Message
     
    did i miss the reverse split announcement?

     

    Why would it go up 150% from here? better/doubling margins, faster growth (or stop shrinking), ... a multiple at 2.5x where it trades now?

     

    Something missing in this article: SB/S buys DT's majority stake in TMUS but how are the remaining public shareholders of TMUS and S going to get combined?

     

    I predict they let TMUS mgmt run the combined biz so the rebel Legere is viewed as the "uncarrier" attacking the duopolists - that probably sells better in DC. You are not taking out an aggressive competitor in TMUS, but you are harnessing it and giving it the strategic resources and scale to wreck further havoc. I also think they call the combined company T-Mobile USA.
    29 May 2014, 11:04 AM Reply Like
  • six pack
    , contributor
    Comments (9) | Send Message
     
    So would TMUS wreak havoc at a different competitive price point or would S go along with the with the same strategy?
    29 May 2014, 12:43 PM Reply Like
  • BigAppleGuy
    , contributor
    Comments (183) | Send Message
     
    nah Sprint is a 100+ year old brand...how about: SprinT-Mobile.
    29 May 2014, 02:40 PM Reply Like
  • jbound
    , contributor
    Comments (110) | Send Message
     
    I think Sprint-US is a better name.
    30 May 2014, 05:16 AM Reply Like
  • skibimamex
    , contributor
    Comments (467) | Send Message
     
    I dont think the name really matters to me as an investor but Masa will call it whatever it takes to get an edge on convincing the regulators the combined company will remain/become an aggressive attacker. In other words, would the regulators think differently if their darling of new age competitor T-Mobile USA were the "acquirer" rather than Sprint. I dont know -- it shouldn't make a difference -- but it may have some subtle influence on the regulators perception as validation that the culture of the new entity as the "attacker" would be preserved rather than the bumbling misfit that Sprint conjurs up.
    30 May 2014, 08:44 AM Reply Like
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