Remember when reports started circulating around that there was going to be a Sprint-T-Mobile merger? Well, after weeks of discussing the merger, Sprint (NYSE:$S) and T-Mobile (NASDAQ:$TMUS) announced on Saturday that the two carriers will not be going forward with the potential deal.
The reason? A number of reports have suggested that the talks hit several hurdles.
If executed, a Sprint-T-Mobile deal would have created a mobile giant that has more than 100 million subscribers. To top it off, this would put the companies within reach of Verizon (NYSE:$VZ) and AT&T (NYSE:$T), who are the industry’s top contenders.
“The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders,” John Legere, CEO of T-Mobile U.S, said.
“However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile’s shareholders compared to our outstanding stand-alone performance and track record,” Legere added.
Some people are surprised that talks of a Sprint-T-Mobile merger have been thrown out, while others were expecting something like this to happen. Why? Last week, reports circulated that SoftBank – the Japanese corporation that controls Sprint – was planning to end talks with T-Mobile.
“While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own,” Sprint president Marcelo Claure said.
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