Menu
Report: SoftBank, DT close to deal on Sprint, T-Mobile merger

Report: SoftBank, DT close to deal on Sprint, T-Mobile merger

SoftBank make a bid in the next few months, Nikkei reported

Japanese conglomerate SoftBank and German carrier Deutsche Telekom are close to a deal that would merge T-Mobile US with Sprint, eliminating one of the four major mobile competitors in the U.S., according to the Nikkei news agency.

SoftBank would pay more than 2 trillion yen (US$19 billion) for a stake of up to 70 percent in T-Mobile, which is the fourth-largest mobile operator in the U.S., Nikkei said, citing unnamed sources. SoftBank already owns a majority of Sprint, the country's third-largest carrier. T-Mobile is majority owned by Deutsche Telekom.

The Wall Street Journal had reported earlier this month that Sprint was studying regulatory concerns about such a deal and might make an offer for T-Mobile in the first half of next year. The Nikkei story, posted on Wednesday in Japan, said the parent companies of Sprint and T-Mobile were in the final stages of talks on a possible deal. SoftBank might make its offer as early as spring 2014, Nikkei said, roughly matching the earlier report on timing.

A $19 billion price tag for T-Mobile would nearly equal the $21.6 billion that SoftBank paid for 78 percent of Sprint earlier this year.

Combining Sprint and T-Mobile would create a carrier with nearly 100 million customers, close to subscriber parity with AT&T and Verizon Wireless, each of which has more than 100 million. However, U.S. regulators might block such a transaction in order to preserve competition in the nation's wireless industry. When the government shot down AT&T's proposed takeover of T-Mobile in 2011, some regulators cited the need to keep four major rivals in the market.

T-Mobile has proved a scrappy competitor since emerging from the failed AT&T deal. In the past year, in a successful bid to make gains against its bigger rivals, the company has introduced new service and device-purchase plans that other U.S. carriers have emulated.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com


Follow Us

Join the newsletter!

Or
Error: Please check your email address.

Tags mobileMergers and acquisitionsbusiness issuestelecommunicationsprintdeutsche telekomSoftbankCarriersT-Mobile USA

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments