If at first, you don’t succeed, try, try again. T-Mobile and Sprint’s talks have been on-again, and off-again but now officially a merger between the companies is on the horizon.
The reason for the deal? Making 5G a reality according to the two networks.
The deal is all-stock, it’s worth about $26 billion and has Sprint currently valued at $59 billion and when they combine that value will jump to $146 billion. As for the details of the merger, T-Mobile will the lead company and its CEO John Legere will serve as the CEO, and Mike Sievert will continue to serve as COO. Sprint’s CEO Marcelo Claure alongside Masayoshi Son who is the CEO of Sprint’s parent company SoftBank will both serve on the board of directors.
With this new merger, the two companies claim they can roll out their “broad and deep” 5G network faster than they ever could as separate companies. Now, this new deal is no slam dunk by any means. If the agreement is approved, it should close no later than the first half of 2019, but with today’s government in power, this is no guarantee. AT&T found that out when the DOJ slapped them with an antitrust lawsuit for their Time Warner acquisition. Also, the taste of companies failed attempt to purchase T-Mobile back in 2011 is still fresh after it was shot down due to fears of reduced wireless service competition.
With this new merger deal, Sprint and T-Mobile hope to alleviate those concerns by claiming that the 5G movement will include more than just improved cell phone coverage. Another case the two companies are making to see that this merger does not fail is that it will create more jobs for the country. That’s the kind of talk our so-called President loves to hear as he always boast about and promises to his supporters he is creating and bringing jobs back to the country. But that is something companies always promise and eventually do the exact opposite in the name of eliminating overhead.
If the merger clears all hurdles, it will put the newly formed company on the same level as wireless giants as At&T and Verizon. We shall see what happens.
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