Sprint, T-Mobile Merger Talks Edge Closer but Still Drag On
October 25 2017 - 11:34AM
Dow Jones News
By Ryan Knutson
Sprint Corp. and T-Mobile US Inc. both took the unusual step of
canceling their earnings calls this week to avoid questions about
their potential merger, a move seen by many as a sign the companies
are close to announcing an agreement.
Yet despite months of talks, there is still no final deal in
hand, according to people familiar with the matter. An agreement to
combine the nation's third and fourth largest cellular carriers by
subscribers could be announced within the next few weeks, the
people said, though it could also still fall apart.
Broad outlines of the deal are largely settled, the people said:
The transaction will be all-stock, and T-Mobile parent company
Deutsche Telekom AG will have control over the combined company.
T-Mobile Chief Executive John Legere will run the combined company.
Sprint Chairman Masayoshi Son will be co-chairman of the board
along with Tim Höttges, the CEO of Deutsche Telekom.
In an unusual twist, the deal will have no cash breakup fee, the
people said. Instead, if the deal is blocked by regulators,
T-Mobile would have to give Sprint an attractive roaming deal so
Sprint's customers can connect to T-Mobile's towers where Sprint
doesn't have coverage, the people said.
The companies are now working on business and network
integration plans and preparing arguments for what is certain to be
intense antitrust scrutiny in Washington. "Haggling over an
agreement is over," said one person close to the deal.
Drew FitzGerald and Dana Mattioli contributed to this
article
Write to Ryan Knutson at ryan.knutson@wsj.com
(END) Dow Jones Newswires
October 25, 2017 11:19 ET (15:19 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
SentinelOne (NYSE:S)
Historical Stock Chart
From Jun 2024 to Jul 2024
SentinelOne (NYSE:S)
Historical Stock Chart
From Jul 2023 to Jul 2024