CNBC: Sprint/T-Mobile agree on $2B breakup fee, name

CNBC's reported breakup fee figure is higher than the $1B+ previously reported by the WSJ, but still well below the $4B T-Mobile (TMUS +0.2%) was paid by AT&T.

The TV network also reports Sprint (S +1.8%) and T-Mobile have agreed the post-merger company will be called T-Mobile. Though the carriers are roughly equal in size, T-Mobile has been performing much better as of late, and keeping its name would please parent Deutsche Telekom (DTEGY), which uses the T-Mobile brand in other markets.

Past reports have noted brash T-Mobile CEO John Legere will likely be the head of the combined company.

Sprint is trading higher. With skepticism about regulatory approval still running high, a reports about a relatively low breakup fee might be going over well with the Street.

Previous: Sprint, T-Mobile reportedly near agreement on ~$40/share deal

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Comments (7)
  • Mike Serebrennik
    , contributor
    Comments (1231) | Send Message
    Pretty soon, breakup fees may become a recurring profit item:)
    13 Jun 2014, 10:32 AM Reply Like
    , contributor
    Comments (56) | Send Message
    I know there are cost incurred with changing the name completely but if they really want to show that they are a "New and Improved" network, they should improve each individual network were there isn't overlap of coverage, merge the service and then rename the whole network. The ego's involved should know that peoples livelihoods are in the balance as is the quality of life in some areas and they shouldn't do something half #@$ed. It is really about time that the two get together to provide competition for Verizon and AT&T. Not only in pricing but quality of customer service as well. They would not have been able to provide the true competition independently.
    13 Jun 2014, 11:13 AM Reply Like
  • Jayavarman1
    , contributor
    Comments (19) | Send Message
    The merged company should be called Spark Mobile.
    13 Jun 2014, 03:05 PM Reply Like
  • BigAppleGuy
    , contributor
    Comments (204) | Send Message
    13 Jun 2014, 08:49 PM Reply Like
    , contributor
    Comments (56) | Send Message
    Jayavarman1 - Nice - they should send you a free phone and service for a year.
    13 Jun 2014, 08:08 PM Reply Like
    , contributor
    Comments (6426) | Send Message
    It's not only about T Mobile with Sprint.


    It's about M Sons other holdings...........esp... Alibaba Holdings.


    15 Jun 2014, 10:34 AM Reply Like
  • rube123
    , contributor
    Comments (2153) | Send Message
    brand name could have some effect as far as competing with (T) or (VZ) , T-Mobile has less negative in most areas as compered to (Sprint next to nothing )
    if they can get the infrastructure in place they may be able to be viable
    the Alibaba play is Softbank, not Sprint
    its actually Softbank for Sprint also , as Sprint is just a cash register for them
    16 Jun 2014, 08:28 AM Reply Like
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