Update: Sprint and T-Mobile Come To An Agreement On Multi-Billion Dollar Deal

Sprint and T-Mobile Close To Multi-Billion Dollar Deal

It has been reported that the third and fourth largest mobile carriers in the U.S–Sprint and T-Mobile–have come to an agreement on the widely reported merger. While details on the specific amount have varied, Reuters reports that the deal would see Sprint gain T-Mobile for $40 per share for a price of over $32 billion.

In a year that has already seen several acquisitions; the Sprint-T-Mobile deal has been punctuated with Softbank CEO and Sprint Chairman Masayoshi Son promoting his intended war on number one and number two U.S carriers AT&T and Verizon. At number three, Sprint could use a little more muscle if it hopes to provide tough competition to the top two and push better internet for speeds for the prices paid—two of the goals in recent Masayoshi Son’s PR manifesto—that’s where snagging T-Mobile would come in.

Prior to Sprint’s bid to buy T-Mobile, the Federal Communications Commission spiked AT&T’s attempt to pick up the company. According to Bloomberg, the deal with come out to half stock, half cash with Deutsche Telekom having roughly 15% stake in the Sprint and T-Mobile union.

Following the failed buyout of T-Mobile by AT&T in 2011, T-Mobile walked away with $3 billion break-up fee as a safety net. The funds added to the warchest allowed for T-Mobile to improve its coverage with the acquisition of MetroPCS last year. In the bid with Sprint, T-Mobile is rumored to be asking for $1 billion.

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Starting with Kabir News in 2013, James has focused on tech, gaming, and entertainment. When not writing, he enjoys catching up on sci-fi and horror shows and comics. He can be followed on Twitter @MetalSwift.

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