WSJ: Sprint Planning to Place a Bid on T-Mobile for a 2014 Takeover
Sprint is said to be looking into the purchase of rival provider, T-Mobile USA, which if successful, would leave the nation dominated by only three major telecoms. According to people who seem to be familiar with the matter, the nationís third-largest wireless carrier is looking to put in a bid for T-Mobile, which is currently the fourth largest carrier in the US.
The sources continue to claim that Sprint is in the early stages of examining regulatory hurdles to the purported buy as it looks toward launching a bid in the first half of 2014. Depending on the stake Sprint attempts to purchase, the deal could run upwards of $20 billion. Looking at revenue for the nine months ending in September, a Sprint/T-Mobile consolidation could create a strong competitor to the now-dominant Verizon and AT&T. As seen above, combined revenues for the third- and fourth- telecoms amounted to $35.8 billion over the nine-month period, compared to AT&Tís roughly $45 billion and more than $51 billion for Verizon.
The success of Sprintís rumored takeover seems to already be on shaky ground, however as AT&T is still licking its wounds from a failed merger attempt just two years ago. Interestingly, at the same time, Sprint disagreed with the two companiesí joining, to the point where it filed a formal petition with the FCC. AT&Tís proposal was set at $39 billion.
Behind the T-Mobile takeover is supposedly Masayoshi Son, chief executive of Japanís SoftBank, which in July officially closed out a deal for controlling interest in Sprint. Son is known to be an aggressive businessman and has expanded his communication technology empire through a series of acquisitions and takeovers.
Furthermore, The Wall Street Journal
is reporting that Deutsche Telekom, which is currently majority owners of T-Mobile USA, is looking for an exit from the US market. Overall, a Sprint T-Mobile fusion would potentially bring together 53 million post-paid subscribers, compared to AT&Tís 72 million and Verizonís 95 million.
Weíll have to see what comes of the whole ordeal by being patient.
Source: The Wall Street Journal