Sprint Merger Agreement

In December 2013, there were several reports that Sprint Corporation and its parent company SoftBank had agreed to acquire a majority stake in T-Mobile US at a cost of at least $20 billion. The proposed merger, which would have resulted in the country`s main national airlines being controlled by only three companies, would further strengthen T-Mobile`s market-wide position. [7] [9] Members of the Government were skeptical that such an acquisition would be authorized by the supervisory authorities, citing concerns about cartels and abuse of dominance and the explicit objective of FCC Chairman Tom Wheeler to own four domestic airlines in the United States. [10] [11] On April 30, 2014, Bloomberg reported that Sprint was in discussions with its lenders to ensure that the company was financially ready for the $24 billion offer, scheduled for “summer 2014.” It was also reported that John Legere, then CEO of T-Mobile, was the leading candidate for THE CEO of a merged sprint/T-mobile, due to his success within the company, and that Sprint had insisted on a low termination fee to prevent regulators from being incentivized to block the deal, as had happened when the failed attempt to buy T-Mobile by AT-T. [12] Crucial statistics: Sprint shares rose another 6.5% on Friday morning, while T-Mobile shares fell 0.7%. Before the merger was approved by a judge last week, Sprint shares were traded at a 45% discount on the value of the deal, as reported by the Financial Times. Even after increasing by 77% following the Court`s ruling in favour of the merger, Sprint`s stock remains with a slight discount – which is why Deutsche Telekom wanted to negotiate a better price. On April 21, 2020, T-Mobile officially started after the merger with the change on the customer side, the first change being to do with the network. They officially launched their 5G 5G Hz network with the spectrum they had acquired through the Philadelphia merger, and shut down the network for Sprint subscribers. They also stated that wherever 2.5 GHz sprints is live: Atlanta, Chicago, Dallas-Fort Worth, Houston, Kansas City, Los Angeles, New York, Phoenix and Washington, DC; They intend to switch to the T-Mobile brand (NY is next) and prevent sprint subscribers from accessing this network.