T-Mobile and Sprint Discussing a Merger

The number 3 and number 4 wireless carriers in the nation as well as their parents, Deutsche Telekom and Softbank, have been discussing a stock for stock merger where Deutsche would be the majority owner. Both sides haven’t set an exchange ratio for a deal yet but are very actively engaged in talks to make a term sheet.

Ever since Softbank acquired Sprint, the two wireless carriers have been thinking about this joint alliance and the billions of dollars that both synergies can bring together. Earlier this year, Softbank was willing to sell Sprint to T-Mobile.

Now, SoftBank would become a large minority holder while T-Mobile’s CEO John Legere would lead everything else that results from the merger. However, Softbank’s Masayoshi Son would have the ultimate say in how the company would be run. The major issues are whether any merger between the two companies would be guaranteed approval by antitrust regulators.

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