Sprint Could Sell To T-Mobile, But Dish Network Looms

The company thinks it can relinquish control of Sprint to Deutsche Telekom (for a healthy sum, no doubt) so the German communications giant can merge T-Mobile and Sprint on its own. Sprint was prepared to purchase T-Mobile in a deal said to be worth more than $20 billion, but Sprint abandoned its plans in 2014 amid regulatory scrutiny, deciding that it would be too hard to win approval from regulators.

"Japan's SoftBank Group Corp is prepared to give up control of Sprint Corp to Deutsche Telekom AG's T-Mobile US Inc to clinch a merger of the two USA wireless carriers, according to people familiar with the matter".

SoftBank, Sprint's parent company, wants to merge with T-Mobile.

"Nobody is talking right now", said T-Mobile CEO John Legere. That would leave mobile customers in the USA with three choices. T-Mobile also spiked almost 5 percent. Which has led to some people saying that SoftBank may give up control of Sprint to Deutsche Telekom, which is a bit of an interesting turn of events, to say the least.

No talks between SoftBank and Deutsche Telekom are now happening because of the FCC's 600MHz spectrum auction that prevents collusion between competing companies.

There still may be roadblocks in regards to antitrust issues for a possible merger, yet the benefits could be well worth the effort as carriers will need to invest significant resources into 5G networks in the coming years and Sprint and T-Mobile face stiff competition from the US frontrunners Verizon and AT&T. And forthcoming fifth-generation wireless upgrades, or 5G, are expected to cost billions of dollars.

More: Is a Sprint and T-Mobile merger still possible?

SoftBank's CEO Masayoshi Son committed to investing $50B in the USA which would create 50,000 jobs after meeting with President Trump last December.

"We may buy, we may sell", Son told analysts on the company's latest quarterly earnings call earlier this month.

Sprint and T-Mobile will likely face the same regulatory scrutiny if a potential purchase deal is reached between the two.

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