T-Mobile, Sprint end merger discussions

6 Nov 2017

T-Mobile US and Sprint have jointly announced that they have ceased merger talks, as the companies were unable to find mutually agreeable terms. John Legere, President and CEO of T-Mobile US, commented: ‘The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders. However, 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 compared to our outstanding stand-alone performance and track record.’

According to the Wall Street Journal, the decision came after SoftBank Group Corp owner Masayoshi Son, Sprint CEO Marcelo Claure, T-Mobile CEO John Legere and Tim Hottges, CEO of T-Mobile parent Deutsche Telekom (DT), met for dinner at Mr Son’s house in Tokyo to try to reach a final agreement. People briefed on the discussions confirmed that Hottges delivered the new merger terms, but Son and Claure rejected the plan because it did not give SoftBank and Sprint enough control over the combined entity. Going forward, the WSJ report adds that SoftBank now plans to raise its stake in Sprint, but will keep it below the 85% threshold that would trigger a tender offer.

United States, Deutsche Telekom (DT), SoftBank Group Corp, Sprint Corporation (now part of T-Mobile US), T-Mobile US