T-Mobile and Sprint are coming together in a $26.5 billion mega-merger that's all about 5G.
The rumors and speculation swirling for years are fomenting into a dust cloud of money. T-Mobile and Sprint, the third and fourth-largest carriers in the U.S., respectively, are poised to form a single entity in a $26.5 billion merger that would put the united company in a close third position behind AT&T with just over 70 million subscribers.
The companies announced the deal mid-day Sunday with a slick webpage called All for 5G, highlighting the ways in which the merged corporation will focus on next-generation wireless technologies more effectively against the competition.
Should the deal be approved by U.S. regulators — a tall order in an environment that has discouraged M&A between intra-industry entities — the New T-Mobile, as the companies are referring to it — T-Mobile's parent company, Germany's Deutsche Telekom, would own a 42% stake and seat nine board members, while Sprint's parent Softbank would have a 27% stake and four board members. According to Bloomberg, which broke the story, SoftBank CEO Masayoshi Son will have a seat on the board.
On its merger marketing page, Sprint and T-Mobile promise that the New T-Mobile will keep prices low, offer outstanding service, and provide more competition, with "a MAJOR expansion of competition into rural markets and for businesses of all sizes!" Critics point to markets like Canada where just three well-entrenched wireless carriers have less reason to compete, forcing prices up and suppressing consumer choice.
This is a developing story.
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