Seemingly out of nowhere, the Wall Street Journal put out a report this week regarding the T-Mobile and Sprint merger possibility. We thought merger talks had died for good a few months ago, but here we go again.
T-Mobile and Sprint have been negotiating the possibility of a merge for years now. Talks get serious for a few months, then seemingly shut down for good. But the possibility keeps coming back into the spotlight every so often and nothing ever happens. In fact, WSJ mentioned “this is the third time in four years the two have discussed a move.”
Given that this has happened multiple times, I wouldn’t believe a whole lot that you hear from the news. The fact of the matter is, there doesn’t seem to be anything important going on that would indicate to us that there’s more of chance this will happen over last time there was discussion. Quite frankly, even if movement toward a compromise did appear to be made, I’m not sure many people would believe it.
It would not be surprising if this report gets rumors flowing for a few months again in the media space, all to be shut down once again. The last time we heard about this, Sprint’s parent Softbank shut down the possibility that looked to be an official deal with T-Mobile after the Magenta carrier made a second attempt. There was an issue over control, and from what we’ve heard, neither party’s opinion has changed since.
If T-Mobile and Sprint were to merge, the resulting US carrier would be number two in terms of subscriber count, ahead of AT&T and behind Verizon. Again, don’t get your hopes up. We’ll keep you up to date as always.
SOURCE [Wall Street Journal]