Sprint and T-Mobile Officials Are Mute About A Potential Merger

Sprint and T-Mobile have been linked together for a possible merger for quite a while now, but there seems to be a new twist in the tale as the top executives of both the carrier companies chose not to comment on the topic this Thursday. Sprint Corporation’s Chief Executing Officer (CEO), Marcelo Claure, could only mention that he was advised by his attorneys not to comment on any mergers and acquisitions (M&A), while T-Mobile’s Chief Financial Officer (CFO), J. Braxton Carter, II, had nothing new to say. Claure further seemed to fuel the doubts entailing the merger by stating that he thinks that things are going to be different by next year.


Back in 2012, when SoftBank acquired a majority of Sprint’s shares, the Japanese company had also shown an interest in acquiring T-Mobile. That deal, however, couldn’t go through as the federal agencies of the United States under the then-Obama administration opposed the possible consolidation of the carrier market in the country. It was only until after Donald Trump took over as President that the possibility of a merger resurfaced. Reportedly, T-Mobile’s parent company, Deutsche Telekom AG, has been open to selling its stake for some years now but is under no immediate pressure provided the carrier grows its business.  



This is not the first time that the merger seems to be drifting away from being a reality. Since the time the talks were first initiated, the possibility of the merger has been a popular subject of debate among the industry experts. While some believe that the unification of the two companies is the only sensible choice, others are highly skeptical about that proposition. 

Additionally, the aforementioned executives of the two carriers had also opened talks with each other at one point, only to come to a standstill position as it appears today. Whether or not a deal gets put pen to paper will be seen in a matter of time. Moreover, the possibility of an intervention by the government officials hasn’t been completely ruled out yet. Until any further comment by either of the companies, it would be safe to assume that a merger won’t be taking place anytime soon.
Source: TheStreet




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