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Report: Sprint to Make Bid for T-Mobile in June or July

t-mobile girl

Sources of Bloomberg state that Sprint is getting ready to make a bid for T-Mobile. According to three sources, who wished not to be named due to the privacy of the talks, SoftBank Corp. (who owns about 80% of Sprint), is preparing a case to present to FCC regulators, as well as securing funds for acquiring T-Mobile, with a formal bid to come in June or July.

From what was stated, Sprint would be taking on about $8.6 billion in current debt of T-Mobile’s, plus the reported sticker price of the company which sits currently around $24 billion. 

When AT&T attempted to acquire T-Mobile back in 2011, but failed, the company had to pay T-Mobile $6 billion in cash and spectrum, ultimately allowing T-Mobile to become more of a competitor in the US wireless market. This is exactly what SoftBank’s CEO, Masayoshi Son is looking to avoid.

Son’s team is reported as saying that AT&T was unprepared when it made its bid, not able to convince regulators that the acquisition would be a good thing for the US telecommunications industry. Sources state that the company will look to do whatever they can to make sure any type of termination fee is as low as possible, just in case the deal does not go through. 

Naturally, no company is currently taking questions about the reported deal, but in the event in which one is made, it would need to go through the boards of SoftBank, Sprint, T-Mobile, and Deutsche Telekom (majority owner of T-Mobile US). With so many people involved, it could take quite a while before we actually know what is to be done or what Sprint has planned.

Let’s imagine this deal goes through and T-Mobile ultimately gets swallowed by Sprint – would you be upset? T-Mobile has been pushing the envelope here in America for customers, fighting a big UNcarrier battle against Verizon and AT&T. It would be kind of sad to possibly see that go away. But again, we don’t know exactly how this will play out. 

Let us know your thoughts below. 

Via: Bloomberg
  • Rob

    I’m not thrilled by the idea. In December I left Sprint after years of signal problems and waiting what seemed like an eternity for LTE to launch. It finally arrived, was good at first, and then sank to about the performance levels of 3G from the other carriers. I think U.S. regulators should make damn sure any approval is done for the right reasons. I don’t see this merger as being substantively different from the AT&T deal which the feds ultimately rejected (with a great deal of input from Sprint, if I remember correctly). I’d be opposed to a Sprint/T-Mobile merger at this point.

  • Gregory Teck

    Ok so i wouldn’t mind sprent nt buying t mobile, First of T Mobile’s network here in central New Mexico is in one word despicable 2g seriously come on now so desperately get it together sprint at least runs 3G here so I say go for It Sprint go get Em… ugh I can’t stan t mobile service it makes me furious can’t even browse the Web download apps without the use of wifi enabled if u have dsl that is

  • Jamen Lang

    I’m switching tonight, they need all the help they can get.

  • http://www.ytmnd.com MH

    Needs to be the other way around. Sprint is THE WORST.

  • Guest

    Yeah….

  • Guest

    Uhhhhh

  • Woodhouse

    Those figures make me think that Google would be a welcome alternative as a T-Mobile suitor in the eyes of the FCC, since they have the cash on hand for an outright buy (if they wanted to go that route) and it would maintain the status quo of 4 major carriers nationwide.

  • Shawn John

    HAHAHAH….Another failed merger attempt will lead to more money for TMO and additional Spectrum. The FCC does not and will not allow a carrier to buy out TMO. Last time this happened TMO was awarded 4 Billion.

  • http://twitter.com/geoff5093 Geoff Johnson

    I think Google should buy T-Mobile.

    • Joe Butler

      T-Mobile…a Goog–er–Lenovo company.

  • Jeremy Gross

    not this at&t like crap again

  • Guy Pierce

    Oh hell no!!!

  • bionicwaffle

    While I can see logic to this strictly from a business standpoint, come on Sprint!?!?! Didn’t you learn your lesson with Nextel? You had CDMA, they had iden. It cost you a ton of money – far more than anticipated to “merge” (eliminate iden) the two. Now you still have CDMA and T-Moblie has GSM. It’s the same thing all over again. Look forward to lots of headaches, money, and customers who don’t understand the complication. The one thing Sprint has going for them are both are doing, or trying to roll out, LTE. Then again they operate on different frequencies I think so I’m not sure how much of a help that is.

    • Maverick

      Then explain tmobile buying Metro PSC

      One is hspa/gsm and the other cdma/lte, as you can see both are also going towards a universal spectrum ” LTE “.

      So what’s the issue…

      • Adrynalyne

        Sprint has a hard enough time rolling out LTE to their network as it is. VoLTE is not in their cards anytime soon and even when the rollout happens, it will be slow, slow, slow to upgrade areas.

  • LiterofCola

    Great, two crappy companies merging to become an ultimate badass crap company.

    • bionicwaffle

      I think it was Larry Page who said in reference to Microsoft/WinPhone and Nokia “Two turkeys don’t make an eagle”.

    • JeffColorado

      I just came to Tmo last year from Verizon. Has been great for me so far. Way more choice, way less hassle and bossiness, and it’s much cheaper. If Tmo is “crappy” what does that make Verizon?

      I don’t miss Verizon at all.

      • AngryBadger

        Same here. Having a blast on TMO.

      • RacingManiac

        Same boat, TMo works great for me, and their international plan is the best thing around. I traveled to Asia for a week and my phone and data worked everywhere I go….

  • Omar Amer

    if softbank has that much money to buy another telecom… why dont they invest in sprint and make it a power house? the decision making seems a little silly.

    • chrisbuda

      they are already investing into Sprint, they need T-Mobile for scale so they can compent against verzion and AT&T

  • NigelTark

    Son has said, if this goes through he will shake things up and start a price war with Verizon and AT&T.

    • Son

      Price is irrelevant if you don’t have coverage. Network first, price later. I’d be amongst the first to jump to T-Mobrint but I’m literally 30 miles away from their closest 3G coverage. I live in Western New York state, not exactly flyover country.

      • NigelTark

        A combined company will be able to build out a network that can compete.

  • Nicholas Ruiz

    As long as Legere and his people run the new company then okay. Because Sprint has terrible leadership, customer service, data reception and pretty much everything. It’s the only major carrier I know of where literally everyone I have talked to hates being on that network. It is awful.

    And haha @ using the most awkward picture of the T-Mobile girl

  • Matt G

    The way I look at it is Verizon and AT&T are the bullies on the play ground. So Sprint thinks hey if we join that other kid getting beat up on maybe we can win. Once that happens Verizon and AT&T would be happy to put aside there differences for a while and gang up on there new merger and destroy them to the point where we have two wireless carriers. It won’t work

  • BrookRLeonard

    Sprint under Softbank is not the Sprint that many have loathed over the past years. Additionally, The Verge reported that Legere may take the reigns of the merged company and he’s largely responsible for T-Mobile’s relevance. And for all we know it could be the T-Mobile brand that survives the merger and not the Sprint brand! Or maybe even a new brand like Softbank USA. But the bottom line is that it’s still just a rumor. http://sn.im/28v3ntg

  • Caveman

    “un-carrier” to “no-carrier”

  • Mark Menning

    it would be sad to see a GSM carrier swallowed and turned into a CDMA carrier. If it went the other way though, it might not be so bad

    • chrisbuda

      i don’t think so, i think it will be more of a LTE carrier with some CDMA and possible GSM for T-mobile

      • http://www.ytmnd.com MH

        Sprint LTE network is smaller than TMO’s, which is arguably tiny. So it’s a CDMA carrier with LTE swallowing up a GSM carrier with LTE capability

    • Gregory Teck

      That’s what I wanted to add to my first post tats my only draw back to sprint buying t mobile is the whole Gsm gone CDMA

  • Minh Nguyen

    Is T-Mobile still using her for commercials?

    • Gigantic

      No, and thank god for that. Her face is the visual equivalent of that moronic GIGAAANTIC GIGAAANTIC GIGAAANTIC A BIG BIG LOVE Apple commercial that seems to be everywhere right now. The. Absolute. Worst.

      • Matthew Ponce de Leon

        Why does everyone hate that commercial? That’s one of Apple’s best commercials in about four years.

      • cizzlen

        Her face is the best thing about her. Would smash /10

        Although I agree that Apple commercial fkng sucks big time. Stupid ass song.

        • michael arazan

          I hate that stupid music commercial apple is using, it’s on every channel here every 5 minutes, it’s starting to turn into torture.

          • cizzlen

            GIIIIGAAAATAACCKK GIGAAAANTAACK

            HOLY $H!* SHUT THE **** UP

  • Jeremy Sheehan

    2 words: REVERSE MERGER! Can you imagine getting the 2 networks together but having the awesomeness of TMO leading the charge?

  • Ralph Bretz

    Please no. T-Mobile seems to be the option to take on AT&T and Verizon.
    Sprint had their chance and failed.

    • Dominick White

      Haha, you are joking right?

      • Ralph Bretz

        No not joking. Sprint’s Network is extremely slow, they are taking forever to update it to faster speeds.

        Granted right now T-Mobile’s 4G is is a very limited number of areas but it will be expanded over the the majority of it’s 2G area by the end of the year and T-Mobile has the better pricing.

  • Orion

    As long as it benefits both companies and Legere runs everything….. I’m all for it.

  • David Tyler

    My, My, just waiting for T-mobile to get another break up fee.

  • WickedToby741

    Legere is rumored to be the front runner to lead the merged company. I don’t know about anyone else, but I’d be thrilled to see a Legere led combined company with the cash backing of Softbank go toe-to-toe with Verizon and AT&T. Bring it on.

  • Erstam

    Why can’t tmobile buy Sprint?

    • WickedToby741

      Honestly it may be structured that way. Softbank/Sprint could do the buying, but they’d be smart to retain the T-Mobile branding, making it a reverse acquisition. And reports are that Legere is the front runner to lead the merged company.

      • Rashad

        Exactly, like MetroPCS did when they merged with T-Mobile. MetroPCS bought T-Mobile but the T-Mobile branding is what remains.

      • chrisbuda

        that not uncommon, Kmart bought out Sears and decided to use the Sears name for the company, NationsBank bought out Bank of America, SBC Commicatioins bought out AT&T same story, not uncommon at all

  • flosserelli

    Maybe I will hold onto my VZW unlimited lines a little longer….

    • 213ninja

      i heard that

  • Matthew DiGiacomo

    I’m confused. This article makes it sound like if Sprint makes a good case, they get T-Mobile no matter what. Can’t T-Mobile say no? I don’t understand..

    • Hershel

      money talks….

      • Matthew DiGiacomo

        Yeah but why would Legere want to be swallowed up by one of the companies he hates?

        • Hershel

          really depends on what goes on behind closed doors. The way I look at it, their combined assets could make for a better network over all.

          People just need to think outside the box. Its why America is in such a shi tty state.

        • BeggarBoy

          Legere, unless he was a major stockholder in T-Mobile, really doesn’t have any veto rights over a takeover. Ultimately the shareholders decide whether or not to sell a company: with ‘Legere/management/board of directors’ agreeing and advocating for a sale (a friendly takeover) or doing it without their agreement (a hostile takeover). This is obviously a simplification of what it entails to buy out a company.

    • http://pharaohtechblog.blogspot.com/ Conan Kudo (ニール・ゴンパ)

      It’s all conditional on Sprint, SoftBank, Deutsche Telekom, and T-Mobile US director boards’ approval. However, T-Mobile will only be presented with an offer if the first three approve the deal first.

    • WickedToby741

      They’re in active discussions; it’s not a hostile takeover. And Legere is rumored to be the front runner to lead the merged company. Additionally, even though Sprint would be doing the buying, they could choose to retain the T-Mobile branding and strategy instead.

      • Justin W

        I would love if this specific scenario occurs, however, every other scenario is not good for consumers. It would definitely burst T-Mobile up to a much better place to combat AT&T/Verizon, and it would be a great way for them to increase coverage somewhat significantly.

        • WickedToby741

          T-Mobile’s strategy and marketing are better than Sprint’s at the moment, and their respective quarterly performances reflect that. The T-Mobile brand has the momentum right now and Softbank would be wise to capitalize on that and Legere. The only question comes down to how attached Deutsche Telekom is to the T-Mobile brand. Even if they can’t use the T-Mobile brand, I’d rather see them rebrand the whole company (Softbank USA?) instead of use the Sprint brand. Sprint just has such a poor brand image right now.

          • Marc

            Deutsche Telekom moved away from the T-Mobile branding in their home market. Don’t think they are too attached to the brand anymore and they wanted to get out off the US market for a while now. Leaving the US with a few billion dollars sweetens the deal…

    • Jack Keating

      it doesn’t really matter as T-Mobile is on borrowed time, Deutsche wants nothing to do with the US Market

  • Tyrone Biggums

    That face is a boner killer.

    • flosserelli

      Agreed. That photo of Carly Foulkes makes her looks like Herman Munster’s niece.

  • Silky Johnson

    I just left sprint and switched switched to tmo in November…. if this happens im going to an at&t mvno

  • Hershel

    people having aneurysms over this just crack me up…….

    ever though of the outcome this may boring and the benefits for both parties?

    • http://people.ign.com/mrfrodo24 MrFrodo24

      If anything, people are surprised about the one buying, seeing as Sprint is kinda regarded as the worst carrier when grouped with VZ, ATT, and T-Mobile

  • antwonw

    I hope this planned acquisition goes down in firey pink flames and then T-Mobile gets more spectrum to expand. This would be a stupid merger with each network using entirely different telecommunication technologies. Furthermore, Sprint hasn’t had the best track record. Yeah they’re pushing their Framily plans but they aren’t making as big of an impact as T-Mobile. If Sprint acquires T-Mobile, they will have sealed their fate. Verizon and AT&T will gang up on them so much. Also, I don’t believe the boards of T-Mobile USA nor its parent majority holder, Deutsche Telekom, will want to give up their stake in the US telecommunications. Especially have just getting, what, 4 million new customers? No way, they see that its flourishing and could totally dominate Sprint in the market and have a greater impact. Their is no way they’ll vote on it to go through.

    • WickedToby741

      I don’t think you understand. They have been actively negotiating for months now. And by “they” I mean Softbank, Sprint, T-Mobile USA, and Deutsche Telekom. And why would you think they wouldn’t want out of the US market? They tried it once before with AT&T and even with their momentum they’re still barely an annoyance to Verizon and AT&T. A merged company with a more sound financial backing (Softbank) and merged spectrum holdings has a much better chance of competing. And while current network standards are different, they’re both actively migrating to LTE and the Nexus 5 is a testament to the fact you can make one phone to work across both networks. And don’t be so glum about the whole thing. It’s not even official yet and rumors are pointing to Legere being in charge following the merger. I’m personally excited by the prospects of arming Legere with more cash and spectrum.

      • Guest

        Ah, but would Legere actually be at the helm?

        • WickedToby741

          Hard to say, but that’s the current rumor. And honestly, they’d be stupid not to put the guy in charge. He is almost solely responsible for T-Mobile’s recent momentum. Additionally, it seems as though Legere’s thoughts and attitude align with Son’s, Softbank’s CEO, but that could either mean they get along really well or butt heads.

      • envoy510

        I don’t see how the merged spectrum helps, given one is GSM and the other CDMA. Maybe they both have LTE spectrum bands?

  • XboxOne

    oh god. no.

  • G.C.

    Very happy I didn’t drop Verizon for Tmo right about now.

    • Hershel

      because rumors are just rumors right?

      • G.C.

        glad you figured out how to go through others comments and put your two cents of the same opinion repeatedly. Very impressed.

        I’m happy because although it is a rumor, if I had already switched, I would not have the option to go back to my unlimited data. I still have options now that I wouldn’t have otherwise.

      • hoosiercub88

        They may be rumors, but at least getting shafted on Verizon to cling to grandfathered unlimited LTE and solid network coverage.. Your carrier isn’t ever going to be in threat of being acquired by someone else and they could flip everything around.

        • http://www.ytmnd.com MH

          How exactly are we getting shafted by Verizon?

    • gintoddic

      even if this did happen, you’d well out of any contract you have with verizon in the first place.

      • http://www.nclf.net/ Goldman60

        Not necessarily, the last 2 year unlimited data plans don’t leave contract until mid June. I’m still under my contract I got with my GNexus until the 25th ish

  • Ray

    T-mobile customer run while you have the chance!

    • T4rd

      But… there’s nowhere left to run! =(

      • Matthew Ponce de Leon

        Soon, there will be Google Wireless.

  • [A]dri[A]n

    And there goes all the work T-Mobile did to become semi-relevant.

    • Hershel

      1. its just a rumor.
      2. we do not know what this will bring if this happens to go through.

      • WickedToby741

        I really don’t understand the negativity behind this. Sprint under Softbank is not the Sprint that many have loathed over the past years. Additionally, The Verge reported that Legere may take the reigns of the merged company and he’s largely responsible for T-Mobile’s relevance. And for all we know it could be the T-Mobile brand that survives the merger and not the Sprint brand! Or maybe even a new brand like Softbank USA. But the bottom line is that it’s still just a rumor.

        • Willie D

          You’re right the Sprint under Softbank isnt the same, it’s actually worse…

  • William Robertson

    I think T-Mobile’s doing a great job as it is (although…I don’t have to worry about their bottom line). In fact, T-Mobile just finished rolling out LTE in my area. I’d like to avoid seeing Sprint screw this up.

    • Hershel

      Given nothing is set in stone yet, lets just wait before we start to cry

      • William Robertson

        Well as I wasn’t crying about anything, I’d be inclined to agree with you. Being apprehensive is a perfectly justifiable reaction when you’re really pleased with a company and another company clearly wants to buy them out. I never said Sprint would ruin the world, I’m just concerned that, if this goes through, T-Mobile could change in a way I don’t like.

        Let’s all stay cool.

    • Professor Hubert J. Farnsworth

      Hesse should be out and Legere in control…with Softbank obviously being the puppet master :)

      • William Robertson

        Yeah, if the deal went through, I think Softbank would be insane not to keep Legere.

      • Green

        That’s what I’ve heard is going to happen.
        I don’t like T-Mobile and he’s part of the reason why.

      • http://www.nclf.net/ Goldman60

        Reverse merger plox

  • Chris VanAnden

    I’m more curious about the spectrum. Don’t they both use different technologies? I’m not completely up to date on my Sprint knowledge-base though.

    • Blue Sun

      I believe that T-Mobile is utilizing GSM, while Sprint utilizes CDMA. I’m wondering which technology they would use as the standard.

      • Chris VanAnden

        That’s what I thought also. Perhaps they have a similarity with the 4G technology.

      • Jack Keating

        Mahoshi mentioned that he wants Sprint’s network inter-linked with T-Mobile rather than spending money to keep building out Sprint’s network. T-Mobile already has the infrastructure built out, both carriers have equipment on practically the same towers, so merging both networks wouldn’t be too difficult

      • WickedToby741

        LTE would be the standard since it’s what they’re both migrating to anyways, but the Nexus 5 shows that a single phone can be built to work fully on both networks (and AT&T’s as well). The assumption is that there would be a point where both companies offer LTE-only devices or devices like the Nexus 5 and then retire their respective GSM and CDMA networks a few years down the road.

    • Rashad

      Well this could act the same as the Metro PCS-T-Mobile merger. Metro PCS (CDMA) bought T-Mobile (GSM) but the Metro PCS customers are being upgraded to T-Mobile phones.

      http://www.telekom.com/media/company/184668

      http://newsroom.t-mobile.com/phoenix.zhtml?c=251624&p=irol-newsarticle&ID=1829966

      • Taylor Levesque

        T-Mobile bought MetroPCS buddy

  • Capt. Crunch

    F**K!

  • Kevin Verdesca

    Here comes the Sprint hate

    • Hershel

      much suck living in the middle of nowhere.

      • Jeff C

        If you live in the middle of nowhere, you risk your life.

        • T4rd

          What you did there.. I see it. =p

      • hoosiercub88

        Different from T-Mobile how?

    • http://www.ytmnd.com MH

      It’s all justified

  • Tony Byatt