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Mobile and Sprint finally, officially, say they definitely won't merge
05 November 2017, 02:07 | Denise Dawson
T-Mobile-Sprint merger may not be dead after all as CEOs Legere and Claure reportedly revive talks
The companies said they ended talks because they "were unable to find mutually agreeable terms".
Sprint and T-Mobile's have abandoned discussions about a potential merger.
"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination", Sprint CEO Marcelo Claure said Saturday in a jointstatement with T-Mobile.
T-Mobile CEO John Legere also said there were benefits to consolidating, but added that, "we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders".
Earlier this week, sources claimedSoftBank's board had chose to call off the Sprint-T-mobile merger, the reason being an inability to work out ownership terms with T-Mobile's Deutsche Telekom. A merged T-Mobile-Sprint would have been a major challenger to number two AT&T, and could have given Verizon a run for the top spot in a few years. The decision to call off merger talks came after a meeting involving the heads of all four companies, according to The Wall Street Journal. SoftBank CEO Masayoshi Son has talked about spinning off a new company that would own the valuable spectrum as a way to unlock its value. With the new Trump administration, it was thought regulators might be more relaxed.
T-Mobile has seen growth in customer numbers in recent years, which many view as a reward for pioneering more customer-friendly options such as dropping two-year contracts, The Associated Press reports. Sprint also controls the largest holding of 2.5 gigahertz airwave licenses in the USA, a crown jewel that has been obscured inside a money-losing business. Tokyo-based SoftBank had previously seemed amenable to a stock-for-stock merger that valued Sprint at or near its market price, with no premium, people familiar with the matter said last month. "We won't stop now".
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