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SoftBank, Deutsche Telekom Discussing T-Mobile Buyout

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Jan 19, 2014, 10:06 AM   by Eric M. Zeman

SoftBank CEO Masayoshi Son has begun active talks with Deutsche Telekom on how to acquire T-Mobile. According to sources cited by Bloomberg, the two companies are exploring the best way to structure such a deal. Unresolved issues include how much cash and stock SoftBank will pay, as well as how best to integrate the two companies, and what sort of break-up fees might be assigned. Deutsche Telekom wants all cash for the deal, but SoftBank wants to use both cash and stock. T-Mobile's market value is about $26 billion and SoftBank already has assurances from a handful of banks that they'll finance the deal. Son is reluctant to agree to break-up fees, as SoftBank has already taken on a lot of debt to buy Sprint. Last, the companies hope to structure the deal so that it meets as little resistance as possible from federal regulators, which are sure to scrutinize the deal closely. Bloomberg says that Sprint's management is not party to the talks, but CEO Dan Hesse knew Son wanted to buy T-Mobile when he agreed to sell a large equity stake of Sprint to SoftBank. The boards of SoftBank, Deutsche Telekom, Sprint, and T-Mobile will need to approve any deal.


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Jan 19, 2014, 9:39 PM

I hope it happens.

There seems to be a lot of hate for Sprint but they are going to be a HUGE threat to ATT and Verizon soon after the LTE is rolled out and they are one of the only carriers offering unlimited data. I live in an area the 4G rollout is almost complete. I don't have to fear going over my data like I've seen with the other 2. I wont be switching carriers anytime soon. In fact I will be upgrading with Sprint very soon. There also isnt Tmobile here. I will say I dont want Sprint and Tmobile to merge but rather act as the 2 separate companies that work together. Using Sprints towers Tmobile would be huge overnight as well as offering Sprint customers access to Tmobiles LTE network in areas they havent deployed LTE. I've wanted to see Tmobile here fo...
I don't care if they are a threat to ATT/VZN. I want to keep my less-awful carrier from getting worse. It won't help me any to reduce ATT's balance if I have an evil phone bundling/hacking/subsidizing carrier too.
Hope in one hand and C R A P in the other, see which one fills up faster?
What people fail to understand is that running a large company with lots of customers costs lots of money! Prices will absolutely go up if Sprint purchases T-Mobile and along ...
That is certainly a interesting point about the unlimited data. I put my vote that data won't be unlimited without some catch either being done away with, higher cost to keep it, or having to pay for a higher limit which in my opinion is a rip off com...

Jan 19, 2014, 9:58 PM

Status Quo is a non-starter

Seems like everyone around here has an opinion that is a variation on status quo;

- Sprint stinks. Don't let them mess up TMUS.
- we like what TMUS is doing. Let them keep it up.
- The feds won't/shouldn't let this happen.
- We need to have 2 national GSM operators

The reality is that status quo is a false choice.

1. DT wants to sell TMUS and in my opinion will do so to whomever brings a credible offer to the table. TMUS is a drag on DT's earnings and despite the positive news under Legere & Co., DT wants out.

2. Both S and TMUS are too small (subscriber wise) to grow out of their urban/semi urban availability. They don't have the subscriber base to support the capital investment in infrastructure and also deliver acce...
By far the most insightful post on this thread. Thanks.
^^^^^what he said^^^^^
My biggest concern for the future with a combined T-Mo and Sprint is that, even with Network Vision, Sprint's systems are absolutely awful. I just switched away from Sprint to T-Mo and it's night and day. Everything from SMS, which we've all known f...

Jan 19, 2014, 11:18 AM

Do "dumb" + "dumber" equal "dumbest"??

T-Mobile can put $650 on the table a la Chrysler as a bribe to new customers & while I appreciate the innovation & their stances on unlimited data, unless you live in a dense metro area, good luck with that. Edge will be your most common indicator on your phone which is ridiculous in 2014. Sprint? Good luck too with 100-300 Kbps speeds. I have lived in Illinois, Florida, New Mexico, Montana, Washington, Utah & Idaho & aside from Montana (no native Sprint or T-Mobile) I have tried these 2 again and again over the years. End result is always the same everywhere. T-Mobile is very good in major cities & terrible everywhere else & Sprint is terrible in the cities but you may find a rogue rural tower that is OK. I keep rooting for these 2 but ...
Except for the fact that 99.9% of consumers will never use those cow-covering towers, and people like you are paying to keep em active with little to no use.

I dropped Verizon in favor of T-Mobile long ago, and have not looked back. I have lived in...
The Softbank Sprint is still way, way too new to develop much of an opinion about where the company is heading. But this Softbank CEO seems pretty damn derermined to get Sprint in a better direction. He even said he wants to get Sprint's LTE network o...

Jan 19, 2014, 10:43 AM


"I do have concerns that it would stifle innovation, and too much power would be in the hands of two."
These are Dans words when he spoke about AT&T's proposed purchase of T-Mobile. Couldn't the same be said about putting too much power in the hands of 3? They will essentially be swallowing up another company and taking options away from US consumers. I don't care which way you slice it, if Sprint is allowed to purchase T-Mobile I will lose all faith (only a little left) in our system as it promotes double standards and is truly not doing what's best for us consumers!
Well, was thinking about going to T-Mobile, but not if the Bozo's at Sprint take them over. They will ruin an up and coming player in our mobile market. Sprint screws up everything it touches, and then cries to the government afterwards on just "how...
Thankfully there are a few more barriers than I had previously thought of listed, so let's hope that they can't agree on the structure of the deal to begin with. I fear that FCC regulators would give this deal a pass because the total subscriber base...

Jan 20, 2014, 12:15 PM

This seems like a lot of money to have still a poor coverage

Neither company is in the same boat as Verizon or AT&T for coverage in the US. Even when they merge it won't get much better. So I am confused as to why so much money is trading hands.
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