T-Mobile and Sprint Officially End Merger Talks
T-Mobile and Sprint today said they have ceased talks to merge into a single entity. The companies said they could not find mutually agreement terms. T-Mobile and Sprint have flirted with the idea of merging since 2014. Talks ramped up again earlier this year, but it appears the two companies weren't able to find a deal that worked for both organizations. "The prospect of combining with Sprint has been compelling for a variety of reasons," said T-Mobile CEO John Legere. "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. Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories — ultimately redefining the mobile Internet as we know it." T-Mobile and Sprint have vast spectrum resources, but combining them would have been difficult. Moreover, T-Mobile is worth twice as much as Sprint from a market capitalization perspective and that threw a wrench in how the merged company would be led. Marcelo Claure, Sprint's CEO, said, "While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. We have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth. We look forward to continuing to take the fight to the duopoly and newly emerging competitors." AT&T and Verizon Wireless, the two industry leaders, each have about twice as many customers as both T-Mobile and Sprint.
Sprint Adds Free Hulu to Unlimited Plan
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T-Mobile Hopes to Woo Sprint With a New Tune
T-Mobile has approached Sprint with a new proposal, reports the Wall Street Journal, in an attempt to keep the potential merger of the two companies alive. Talks failed earlier this week when Masayoshi Son, CEO of Sprint parent SoftBank, appeared to walk away from the deal over a disagreement concerning which company would own the other.
Sprint Signs Altice USA As Its Latest MVNO
Sprint has signed an agreement with Altice USA to resell Sprint service as an MVNO. Sprint is calling the deal a first-of-its-kind arrangement, as it will see the companies sharing services.
SoftBank Pulls Rug Out from Under Sprint / T-Mobile Merger
Sprint and T-Mobile may not be merging after all. SoftBank, the majority owner of Sprint, plans to break off merger talks, according to Reuters.