Rabu, 30 April 2014

Sprint looking to make a bid for T-Mobile as soon as June or July

sprint-ceo




For the past several months, there have been some pretty intense rumors surrounding the possibility of Sprint buying out T-Mobile. Sprint has publicly stated that they'd like to at least try to make a bid for T-Mobile, and banks have clarified that a deal would definitely be possible and priced at around $50 billion.


Recently, Sprint has discussed details with six banks about what types of financing structures and debt arrangements would be available should Sprint go forward with buying up T-Mobile. Typically, if a company isn't planning on purchasing another company, they don't have these types of talks just for fun, so it looks like the offer may be getting close to being announced publicly. Masayoshi Son, the chief executive officer of SoftBank (that owns 80% of Sprint stock) is rumored to make an official bid for the smaller carrier in June or July, which is just a month or two away.


Of course, even if T-Mobile accepts whatever offer Sprint makes, the companies will still have to go through the FCC before the merger would complete. The FCC shot down AT&T's attempted purchase of T-Mobile a few years ago, and these types of mergers are under heavy scrutiny with Comcast's infamous Time Warner buyout that we're all hearing about now, so there would still be a pretty good chance that the government would block the acquisition anyway. Regardless of what happens, it looks like Sprint is going to at least take a stab at merging the carriers to try to better compete with AT&T and Verizon, so at least we'll have some interesting news over the summer.


source: Bloomberg




Come comment on this article: Sprint looking to make a bid for T-Mobile as soon as June or July





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