Casey Newton of the Verge (and other sources) reports telecommunications company Sprint is close to a deal that’d allow them to purchase T-Mobile.
Sprint is nearing an agreement to purchase T-Mobile for $40 per share, multiple outlets are reporting. The deal has been rumored for months, with SoftBank CEO Masayoshi Son pledging to launch a price war with larger competitors AT&T and Verizon Wireless if the deal is approved by US regulators. SoftBank completed its acquisition of Sprint for $21.6 billion last summer. Son has subsequently begun to rally Americans against the relatively dismal internet service they get for the prices they pay.
Per CNBC, the price Sprint is rumored to pay for T-Mobile comes in at around $50 billion dollars.
Sprint isn’t the first telecommunications company to attempt to purchase T-Mobile. Back in 2011, March to be exact, AT&T announced they were purchasing the company for $39 billion in stock and cash, making AT&% the largest wireless carrier in the United States, but in December that year, the bid was abandoned.
Of the four mega wireless companies in America, AT&T, Verizon, Sprint the other three, T-Mobile is the weakest. According to Statista.com, Verizon held the biggest market share during the fourth quarter of 2013 at 35 percent. AT&T was second at 32 percent, Sprint third at 16 percent, and T-Mobile fourth at 14 percent. A merge between Sprint and T-Mobile, based on those numbers, who allow Sprint/T-Mobile land right behind AT&T at 30 percent, narrowing the gap between the three companies.
Mergers in this business are far from uncommon. Just last year, T-Mobile acquired Metro PCS and AT&T acquired Cricket.