Sprint Backs Out of T-Mobile Merger, Installs New CEO

Sprint Backs Out of T-Mobile Merger, Installs New CEO

With Sprint stepping away from acquiring T-Mobile at the moment, the company has replaced Dan Hesse as CEO. Taking his place Monday will be Marcelo Claure.

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

For those unfamiliar with Claure, the 43-year old executive joined Sprint’s board in January with his company Brightstar becoming a part of the Softbank family. Claure’s primary focus as the new CEO of Sprint will be strengthening the company to stay competitive in a market with AT&T and Verizon at the top of the hill.

Marcelo Claure became a hot pick for the CEO position based on having built his startup Brightstar into an entity worth $10 billion. Sprint parent company SoftBank will scoop up the rest of Claure’s holdings in Brightstar.

Prior to joining Sprint in 2005, Dan Hesse has been with AT&T for over 20 years. He was CEO of the company’s International branch between 1991 and 1995. Before he became CEO of AT&T in 1997, he was in charge of launching the AT&T dialup service Worldnet. Upon joining Sprint, Hesse was in charge of the landline service Embarq. He became the CEO of Sprint in 2007 and oversaw both the merger with SoftBank and the shuttering of Nextel.

Sprint is currently the third largest company among wireless carriers. Its attempted merger with fourth-ranked T-Mobile was a means to make a strong competitor to AT&T and Verizon. For over a year, T-Mobile has been causing a stir with attractive pricing plans and doing away with the strict 2-year contract plan that was the norm for the wireless industry.

It’s reported that the merger between Sprint and T-Mobile was called off due to issues with regulatory approval in the U.S. Sprint hasn’t made an official statement to ditch the merger entirely.

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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