Four more state AGs object to T-Mobile-Sprint merger

25 Jun 2019

T-Mobile US’s proposed USD26 billion acquisition of Sprint Corp has drawn fresh opposition from a number of state attorneys general (AGs), with four more AGs joining a lawsuit which seeks to block the merger between the two mobile operators. According to Bloomberg, Massachusetts, Hawaii, Minnesota and Nevada have all signed on to the complaint, taking the total number of objections to 13 states and the District of Columbia.

As previously reported by TeleGeography’s CommsUpdate, on 11 June ten state AGs, led by Letitia James of New York and Xavier Becerra of California, filed a lawsuit aiming to derail the mega-merger. The lawsuit was filed in federal court in Manhattan, and was supported by Colorado, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia and Wisconsin.

In April 2018 T-Mobile and Sprint entered into a definitive agreement to merge in an all-stock transaction. They seek to create a company which will be 41.7% owned by T-Mobile’s parent Deutsche Telekom (DT, which would have overall control) and 27.4% owned by Sprint parent SoftBank Group Corp, with the remaining 30.9% in free float. Despite winning over Federal Communications Commission (FCC) chairman Ajit Pai, the long-running merger continues to face opposition from the Department of Justice (DoJ), which believes that the agreed concessions are not sufficient to resolve its concerns.

United States, Sprint Corporation (now part of T-Mobile US), T-Mobile US