It has been reported that the T-Mobile US Inc. (NASDAQ:$TMUS) potential merger with Sprint Corp. (NYSE:$S) is close to coming to agreement on tentative terms. The merger would represent a huge change in the sector by bringing together the third and fourth-largest US wireless carriers. Both companies operate in the communications services sectors.

The source of these reports decided to stay anonymous due to ongoing negotiations.

Reportedly, 40-50% of the company would fall into the possession of Japan’s SoftBank Group Corp (OTCMKTS:$SFTBF). SoftBank Group currently controls Sprint. It was also added that the majority stake would be owned by Deutsche Telekom (OTCMKTS:$DTEGY), the current owner of T-Mobile.

A deal is expected by the end of October, following a finalized deal term sheet and due diligence. However, it is still possible that talks might fail and the merger may fall apart, as it did when teh two companies almost came to an agreement in 2014 but couldn’t finalize the terms. 

T-Mobile opened at $63.85, while Sprint opened at $8.31. The rumors of a merger have caused a significant upswing for both companies’ stocks.

So far, neither Sprint nor T-Mobile have commented. Deutsche Telekom and SoftBank Group have not commented either.

Featured Image: twitter