Sprint and T-Mobile end merger negotiations

Sprint and T-Mobile end merger negotiations

Sprint and T-Mobile end merger negotiations

Sprint has officially ended its negotiation talks with T-Mobile, according to a joint statement issued by the two companies.

Both companies jointly said they couldn't strike mutually agreeable terms.

While agreeing to the appealing nature of the merger, T-Mobile's chief executive officer John Legere reiterated that his company preferred a deal that would provide what he described as "superior long-term value for T-Mobile's shareholders".

"Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories - ultimately redefining the mobile Internet as we know it". The announcement was followed by the recent unsuccessful effort to merge the third- and fourth-largest US wireless carriers, as Sprint parent SoftBank Group Corp (9984.T) and T-Mobile parent Deutsche Telekom AG (DTEGn.DE), both have shown reluctance to part with too much of their prized USA telecom assets.

"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination".

Claure also said Sprint has acknowledged it is ideal to move ahead on its own with its assets "including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth". SoftBank founder and CEO Masayoshi Son reportedly did not want to give up control of Sprint. With the new Trump administration, it was thought regulators might be more relaxed. T-Mobile, controlled by Germany's Deutsche Telekom which owns roughly 65 percent of it, became the first major carrier to eliminate two-year contracts, a shift quickly embraced by consumers and copied by competitors. "We won't stop now". Now sources are back saying that T-Mobile is scrambling to save the deal, and that it has sent revised terms to Sprint in hopes that something can be worked out. Worse, Sprint owner SoftBank appears to be running low on options to deal with the considerable amount of debt Sprint carries.

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