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Report: Sprint, T-Mobile Agree on Price for Acquisition

T-Mobile

On April 30, news broke that Sprint was readying a bid to purchase T-Mobile. Today, according to sources familiar with the deal, the two companies have agreed on a price, settling at about $40 per T-Mo share. At that price, and with T-Mobile’s reported debt of about $14.5 billion, the company’s “theoretical enterprise value” sits around $40.8 billion. 

Not only is it reported that the companies have agreed upon a price for purchase, but have also agreed on a value if the deal is broken up, much like we saw when AT&T put in a bid for T-Mobile in 2011. 

What is still left to finalize, as stated from Bloomberg’s sources, is who will run the company. Our vote would naturally be for John Legere, but he may be a little too “UnCarrier” for Sprint’s taste.

The deal is rumored to be completely finalized and announced as early as July of this year.

Thoughts?

Via: Bloomberg
  • Aaron C

    All I can think of to describe this are words that I can’t use here.

  • Rob Schoenfeld

    Mobile Wonder Turds Unite.

  • TheRobotCow

    Well any hope for T-Mobile will now be forever lost………..

  • bryoneill11

    I just want Google to buy T-mobile :(

  • Higher_Ground

    T-mobile and Sprint were too disjointed to fully compete with AT&T or Verizon. Hopefully as a larger network (that didn’t necessarily overlap) they will be a stronger competitor. This is probably the best scenario over one of the two were to getting sold to AT&T or otherwise going out of business.

  • Jprime

    would this improve T Mo’s service?

  • https://www.facebook.com/christopher.johnsc chris_johns

    I think this is a good thing…they can join the ring now with verizon and at&t and possibly give us a solid third option…if i didnt have verizon id go with tmobile because of their phones and obviously their plans have way better value then vzw…but i wouldnt be happy about downgrading my service…this can make them almost up there with the big dogs in that respect

  • http://idle0095.com/ IDLE0095

    Bye Bye T-Mobile. Same thing Sprint did with Nextel.

  • BRNSMRF

    Please keep all of T-Mobile’s policies and rates. I hate Sprint with all my heart

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    • GJV

      Wow, please tell me where you bought a $10,000 Aston Martin!

  • Tony

    According to yesterday’s fool.com article “T-Mobile will be the brand used by the surviving company with its CEO, John Legere, running the new entity.” Dunno how accurate/valid their source is.
    http://www.fool.com/investing/general/2014/06/02/sprint-t-mobile-merger-closer-to-happening.aspx

    • Balthazar_B

      It doesn’t really matter so long as Masayoshi Son is the controlling shareholder. Although anything is possible since Son — for no reason I can discern — kept Sprint’s incompetent management team in charge after Softbank bought them. It makes me suspect he buys companies like toys and then turns his attention to the next thing.

      • Tony

        After watching one of the interviews with him from the recent re/code conference I’m starting to like his ideas more. I can’t defend his choices with Sprint, but there’s some truth to what he’s saying about needing a merger with the 3rd and 4th carriers here to truly compete with the top two, at least if that competition were to happen in the near future.

        If his goals are to truly disrupt the wireless/broadband industry in the US like he says in his interview, then I can get behind that. He seems to have done decently well growing Softbank Mobile in Japan after they acquired it back in 2005-6. So if his intentions are sincere then I would be glad to see him and Legere finally take the industry to the next level.

  • CapnShiner

    I kind of wish the FTC would enact some kind of moratorium on mergers and acquisitions, at least between companies valued at over $1 billion. We need more competition in the market, not less. I’m sick of hearing about all the telecom companies trying to merge or buy each other out. I don’t want the industry to go back to how things were in the early days of cellular phone service, when there more smaller carriers and they charged roaming fees if you travel out of town, but I think that if we had a few more serious threats to Verizon and AT&T the value to the consumer could improve drastically.

  • coolsilver

    I rather have #framilyfeud than sprint in my t-mobile. :(

    • AUSTEEEZZZ

      #framilyfraud

  • Buckoman

    Okay, I’d like some opinions to be thrown at me here. I’m currently on Verizon with two other family lines. Two of the lines are up for an upgrade, I am not. We were considering Edge since we don’t exactly have the money currently to slam $279 on the table and be trapped for two years. However, we’ve been looking at other options, since Verizon makes less and less sense every time we look at their plans.

    Would T-Mobile be a viable option to go to? We don’t exactly get great coverage where we are since we’re not in a major city, but my friend’s phone jumps around from LTE to HSPA in the area, but I’m not sure if it’s truly consistent. That being said, if Sprint heads to buy T-Mo, would it be worth it to jump ship now, have our ETFs paid, and let the Sprint merge with us, or should we wait and not bear the poor coverage until the acquisition?

    Or, perhaps Cricket could be an option?

  • Maximus

    I love the doom and gloom predictions already. What no one is understanding is Son is a genius! He’s going to take Tmob practices and ideas and with Sprint spectrum and customer base and make it all better. He’s already been super critical of Dan Hesse. Legere will step up with a bigger company with more money and do great things…besides, both share the 1900Mhz spectrum. This is great news!!

    • Balthazar_B

      Notwithstanding Softbank’s apparent success in Japan, is there a single thing Masayoshi Son has said publicly in the last five months that indicates he has the least inkling about broadband strategy or running a business, much less that he’s a genius. And if he was “super critical” of Hesse, why is the latter still Sprint’s CEO instead of unemployed (along with the whole sorry management team)? Obviously I don’t know the guy, but he sure seems to be in above his head, and blissfully unaware of reality.

      • Tony

        I’m not super familiar, but I think the general consensus is that Hesse actually did a decent job turning around Sprint to the point that it could be healthy enough to be sold. It’s no Apple-magnitude turn-around of course.

        As for Masayoshi’s intentions/strategy with a merged Sprint/T-mo I started to come around after watching this interview:
        http://recode.net/2014/03/12/sprint-chief-says-u-s-internet-speeds-are-awful-even-sprints-but-he-can-fix-that/

        I feel more confident about this competency now. Of course nothing’s for sure still…

  • Michael Burnham

    Meh. I like sprint. After many issues when first joined been fine for couple months. Only issues are my phone not with Sprint. Going to upgrade to lg g3 when its released. Customer service with sprint been much better than Verizon

    • jimt

      Anything beats Verizon as long as you have signal where you need it.

      • hfoster52

        There where Verizon rules over Sprint and the not throttling if you are unlimited and not 3G. :)

  • 80am

    Two wrongs do not make a right!

  • bkosh84

    I bet if this goes through Sprint dies and T-Mobile stays. T-Mobile is the stronger brand.

  • Matt G

    I really don’t want Sprint and TMobile to be in the same Framily

  • pyro74boy .

    Sprint is by far the worst network in the U.S,A. Please FCC don’t let this deal happen. I was thinking about switching to T-mobile but not if Sprint buys them.

  • cgalyon

    Sad. :(

  • Matt G

    In a completely unrelated topic, the last 5 stories I have read have not had a comment from the Narrator on it. That has to be a record

    • pyro74boy .

      Thank god for that.

    • http://www.getintonursing.com/ Jon

      Hahahahahaa!!! So true. I was wondering why it’s been so peaceful.

    • PoisonApple31

      Check again – he’s going by Bryan Mills now.

  • Jim Foskett

    Crap. We chose T-Mobile over Sprint because of all the Un-Carrier things they’ve been doing. This really blows.

  • Dennis N Nguyen

    Wow. I hoping that tmobile would buy sprint. Not the other way around. This is sad.

    • Good_Ole_Pinocchio

      Tmobile can’t afford Sprint.

  • cwillen

    Damnit… and I just switched… I hope Sprint doesn’t screw this up…

    • Hakim Leveille

      They will -_-

  • CharlesJorgenson

    Sprint spoils everything, it is now proven

  • Guest

    I was just beginning to enjoy Tmobile…

  • Ant

    Brian Cranston speaks on the Sprint/T-Mobile Merger:

    “You’re not fooling anybody when you say what happened was a natural disaster,” “You’re lying. It was not an earthquake, it wasn’t a typhoon. Because what’s really happening is that you’re hiding something out there— and it is going to send us back to the Stone Age!”

  • Justin Wct Davis

    Haha so you do the etf and get outta ya sprint contract to join tmobile, just to be owned by sprint again hahahahaahah

  • Suman Gandham

    Kinda hoping Legere steps in to lead an MBO… or maybe alternate bidders (Dish… Google…?!)

  • David Tyler

    Im sorry, I dont believe Sprint will do anything to improve their network, even if they are merged with T-mobile. Sprint is a spoil rich kid who does not want to do the work, so he talks with his money by eliminating the competition. We will become another CANADA!

  • skinja99

    This will be bad for consumers.

    We need more competition not less.

    I hope this deal gets shot down the same way the ATT/Tmob deal did, by the Gov’t.

    • Good_Ole_Pinocchio

      We need more competition vs At&t and Verizon. Tmobile and Sprint pose absolutely no threat on their own. And all the prepaid networks are being bought out anyway.

      • re

        you’re absolutely right.
        And FCC should ALLOW this deal if FCC is for REAL competition.

  • J2886M

    How is this good for anyone?

  • Balthazar_B

    Anyone else think Deutsche Telekom is playing Sprint like a fiddle (the way they did AT&T 3 years ago) and are in it only for the $1B termination fee? Nobody can seriously expect that the FCC will approve of this merger.

    • COMPETITION

      what’s wrong with this merger from a antitrust point of view?

      ATT is 2X bigger than Sprint.
      ATT is 2X bigger than T-Mo.
      Verizon is 2X bigger than Sprint.
      Verizon is 2X bigger than T-Mo.

      Together Sprint and T-Mobile are ~SAME size as either ATT or Verizon.
      3 ~EQUAL players.
      SUPERHEATED COMPETITION.

      • hkklife

        Fewer players=less competition. Always a bad thing.

        • lartmander

          I agree less players = BAD, but in this case Sprint is dying as a 4th player anyways. Every quarter they announce losses and decreased subscribers. The only real way that T-Mobile can continue the momentum is to improve their service (ie. more spectrum)

      • Balthazar_B

        If all the news stories that came out when this idea first aired are to be believed, Tom Wheeler told Masayoshi Son *to his face* that the FCC wanted four competitors in the US market and that the merger would NOT be approved. This is like a cop catching a guy in the act of shoplifting and telling him he’ll arrest him if he tries it again. And a couple of months later he sees the guy try to slip a candy bar into his pocket. I’m pretty sure I know what happens next.
        Son is doing a high-risk gamble that things will be different this time, but it’s not like he can’t afford a billion on that bet. For Telekom, it’s a free billion coming their way, some of which can be used to buy spectrum in the next auction.
        I think in many ways the combination of these two carriers would be a good thing, and while we need to separate Sprint’s utterly dismal pre-Softbank history from now, the fact that Softbank kept Sprint’s execrable management team on board is a very disturbing sign, and the recent remarks Son has made about the US broadband market and his utterly unrealistic plans don’t give much confidence that he really knows the difference, despite Softbank’s success in Japan (was that just a lucky fluke?).
        I still think at the end of the day, the FCC says no to this.

      • shmigga

        You are wrong. Even if they merge, Verizon would still have 22 million more subscribers and ATT about 11 Million more.

      • GJV

        Hey Sprint PR guy, is that you? Ok seriously, we’ve already seen how a single agitator (T-Mobile) can force big players to make changes. This notion of “superheated competition” with only three big players is a joke. The more likely result is, like airlines, they tacitly collude and increase prices lockstep, without having to worry that T-mobile will shake everything up.

        • Aaron C

          That’s exactly what I was thinking. Even if the FCC approves this, and they’re managed/run as separate companies, you just know it’s only a matter of time before executives and shareholders find a way to combine the companies to “better compete” against AT&T and Verizon. You know what? T-Mobile is competing just fine on its own, thank you. I was with Verizon for 12 years and jumped ship as soon as T-Mo announced its “uncarrier” plans and Legere opened his mouth, because I liked the principle of the whole thing. I even paid $600 in ETF’s to Verizon just to be rid of them once and for all. But it looks like — as a consumer — I’m about to be shafted again. The customer always gets the shaft. It might be a year from now, but you know it’s going to happen.

    • chris125

      They are being like the gold digger gf who knows the deal won’t go through and is only in it for the money (break up fee)

  • MJ

    Crap! This should be the other way around… This will only turn out to be a down-grade for T-Mobile costumers like myself…

  • Silky Johnson

    You have to be kidding me… I just left Sprint for T-Mobile because of how piss poor they were…. this is ridiculous…. AT&T prepaid here i come

    • BroRob

      You mean Cricket?? :-)

      • ROB

        Go phone

    • JC

      The only problem is that no one else has unlimited 4g!!

    • Hakim Leveille

      Do they have unlimited data though?

  • Fahad Beg

    T-mobile is gonna take the face of sprint for obvious reasons. and Sprint is going to switch to gsm lte. Merged network with gsm and cdma

  • RoadsterHD1

    So does this mean Sprint customers can actually have 4G in California? Or at least HSPA speeds?

  • charesa39

    Crap. I guess I’ll hold off on buying a bunch of $30 T-Mo refill cards in case they scrap the $30 unlimited data plan.

    • Bob

      Of course you can buy more refill cards, why on earth would Sprint get rid of such a popular, cheap unlimited data plan?

      BWAHAHAHAHAHAHAHAHA..

      I’m sorry, that was hilarious. “Oh yeah, we’re totally gonna keep all that uncarrier stuff” – Sprint. Hee, oh my god I’m almost crying I’m laughing so hard over here.

  • Tony Byatt
    • Trysta

      Lol! Seriously perfect.

      I’m sad about this but not a sad as I was when the AT&T/T-mobile merger was looking like it would go through. A sprint/T-mobile joint company would still have an incentive to play like an underdog and hopefully at least some part of T-mobile’s obviously successful management strategy is retained. Sprint/whoever is making the decisions would have to be crazy not to see the value in the T-mobile brand that has been built up recently. Surely they wouldn’t just want to throw that all away?!

  • Donald Motley

    I tremble for my unlimited mobile data plan

  • schoat333

    Well, at least I don’t have a contract so I can jump ship if this goes bad for T-Mobile.

    • Paul Hansen

      I was thinking the exact same thing. Merge a CDMA and GSM mobile entity? I say scrap the Sprint side and use the spectrum for better coverage on the GSM end.

      • Jeremiah Hawkins

        Would be cool to have dual sim phones that will switch depending on stronger signal. (I am assuming I am thinking of dual sims correctly)

        • Ray

          Wrong Sim cards are solely for GSM technology which LTE is. A CDMA phone such as the Moto G on verizon doesnt take a Sim card.

          • anselmo cruz

            But lte isn’t gsm, its It’s own thing

          • Ray

            If you say so.The point still remains the same you don’t use a sim card for cdma

          • anselmo cruz

            Yeah you’re right there

          • Hakim Leveille

            See my reply to Ray

          • Braden Abbott

            LTE is definitely GSM, it isn’t even it’s own thing, it’s just an evolution of HSPA 3G. Verizon and Sprint are now essentially GSM carriers and all it would take is VoLTE and compatible bands on the phone and you could use both Sprint LTE towers and T-Mobile towers…a good example is the Nexus 5, it has bands for both carriers LTE. It would be relatively simple to combine the two networks using VoLTE. Do I want this to happen? NO. All four carriers have great LTE coverage in my little town, so I can’t complain. Reducing the competition would never be good for consumers no matter how you cut it.

          • Hakim Leveille

            Hold on there partner, my wife’s cousin is using an unlocked Verizon branded Note 2 on gsm and one of my best friends is using a Verizon branded S4 on gsm ,so I don’t see your logic here

          • Ray

            How’s is that relevant at all. Boy I tell you some people are special. What your cousins brother sister mother doesn’t do is use a sim card for cdma .of course a Verizon phone works on at&t is globally unlocked geez just use Google I can’t explain it any further.

          • Hakim Leveille

            You originally said that CDMA phones don’t use GSM, the phones I mentioned use both CDMA and GSM, what’s your point?

          • Hakim Leveille

            You said CDMA phones don’t take sim cards

          • Ray

            One last time bud CDMA doesn’t require a sim card therefore it could never be dual sim meaning 2 different sim slot. Do Verizon phones that have LTE in them take sim cards yes. Dual doesn’t mean you can stick any sim card it the phone it means more then one sim slot. What you’re refering to is a Verizon phone being globally unlocked.

          • Hakim Leveille

            I see your point now, I stand corrected

          • Ray

            NP you just owe me 2 ambien that I have to take now in order to go back to sleep.zzzzzz

    • Prime7

      Jump ship where?

      • JC

        That’s exactly what I was thinking, no one has unlimited 4g data anymore

    • Hakim Leveille

      Preach brother preach

  • Jpx

    NOOOOOO I just left Sprint for T-mobile… I understand this could be a good thing, but Sprint is piss poor. Ugh I’ve loved T-mobile so far

    • Hakim Leveille

      I did the same thing in fall 2012

  • moew

    I had to re-read the first bit of the article….

    Sprint is buying Tmobile? That’s a little backwards IMO for TMO.

    • Guest

      Although we view the two as lopsided in favor of T-Mobile… I believe that Sprint is much larger than T-Mobile in terms of market cap.

      • LightofHonor

        Not really.. about 2-3 million subscribers, or about 10%.

        • JMonkeYJ

          Sprint has a $37B market cap vs TMo’s $27B.

          • LightofHonor

            Then why is sprint paying $40B? :-) value is what someone is willing to pay.

          • bkosh84

            The 40 Billion is including Debt. Not just market cap.

    • bkosh84

      No, Softbank is buying T-Mobile and wanting to merge T-Mobile/Sprint together.
      Essentially.. This is what is happening…

  • Good_Ole_Pinocchio

    DO IT!

  • ronnie

    Stupid cause then metro will be worse under sprints hands bad enough its worse w/t mobile

  • bmos18

    Damn just about to switch

    • cwillen

      You may still want to. If you don’t like were you are now, moving to T Mobile should be safe for at least a year. Even if they work out the details on their end by July, the merger would still have to be approved and the details worked out.

      If the merger does go through, and everything goes to hell, worst case is you just go somewhere else. With a GSM phone, You’ll have a lot of options..

      • Anthony Christopher Morey

        What “options” Verizon, AT&T, the new Sprint if the merger go’s through and T-Mobiles business model is scrapped? I hated Verizon and loathed Sprint, I heard enough about AT&T before hand from friends to stay well away from them. I like T-Mobiles service, rates and coverage and that is a first for me. Pray tell, what other “options” ?

        • Ryan

          Honestly, I’m in the same boat. I left Verizon due to horrible business practices, AT&T has awful customer service and treated me like I was a dumbass who didn’t know a thing about technology, and Sprint has had horrible coverage here for years. T-Mobile was the only carrier left to have not only good coverage (better than verizon by a margin depending on exact location), but also good people…

          The FCC better deny this deal, like another I’m very worried about as well…

          • Anthony Christopher Morey

            Well, if they go with T-Mobiles business model then I’m on board with the merger, if sprints, well it was good while it lasted. There is a modicum of hope that the company that purchased sprint is making some encouraging noises about pricing.

          • Braden Abbott

            Well consumers were surveyed and JD power found At&t to be #1 in customer service the last two years in a row, so if you think they are bad, the others must be really bad…

        • cwillen

          There are a lot of small GSM carriers and GSM/MVNO carriers out that piggy back off of AT&T or the current Tmobile network. That being the case, if AT&T’s/Tmobile coverage is good in your area, but you don’t want to deal with their plans or customer service, a MVNO carrier is a good option.

          Also, to be clear, I said with a GSM phone you’d have more options. You can take an unlocked GSM phone to any GSM carrier and have no problems. The same is generally not the same with CDMA networks (unless you’re moving from a CDMA to their CDMA/MVNO).

          • Anthony Christopher Morey

            Yes, I understand what your saying, but in my area the choices are Strait Talk or Metropcs. Not terribly attractive. Come what may, a smart phone is not a necessity for me and I will make due without unlimited data if I have to.

  • chris125

    Poor tmo, they were doing so well. Sprint is where things go to die

    • Guest

      There are doing so great. Been rocking my 15x15MHz (Verizon would call it XLTE) and it’s been awesome. Hope this isn’t true…

      • besweeet

        Verizon would call any amount of band 4/AWS LTE “XLTE.”

    • K

      Hopefully Legere stays. Hesse needs to GTFO

  • Justin Foster

    God forbid =(

  • aNYthing6
    • sefirosu

      Holy crap. This comment wins!

    • T_SprintBank

      Softbank is one of the LARGEST telecom companies in Japan.

      It bought Sprint and if it buys T-mobile, then it knows what it does.

      Under Softbank Sprint+T-Mobile can create a NEW STANDARD-UNIFIED BRAND in the USA, big and powerful enough to beat Verizon and AT&T.

      • 80am

        Doubt it

        • ROB

          He’s right. Where else would a Japanese company invest? Not able to in any Asian markets and get to charge the fees they charge here… Could be a cash cow like the baby bells.

          • michael arazan

            Also by the new deal, it looks T-mo and Sprint will still be separate companies, they may share access to a lot, but it seems to pass the government over-sites they will have to keep both entities separate.

          • Aaron C

            Give them a year before they figure out how to do it legally.

      • http://batman-news.com LiterofCola

        Keep dreamin’

      • Grizzly Atoms

        I have been with ever carrier that matters in the US. Sprint is overall the worst of the bunch.

        • http://www.getintonursing.com/ Jon

          So true. But…think 3 years out from a merger. It’s likely they would combine under one name. That would most likely be T-Mobile given it’s recent momentum. Imagine the combined spectrum of these two carriers running on an LTE-A network. They continue to compete on price and drive the entire industry’s prices downward.

          This could be a very good thing.

          • http://idle0095.com/ IDLE0095

            I agree with the spectrum. But still Verizon has the most 700 Mhz spectrum which is the best for penetration. Sprint and T-Mobile IDK how good they will be. This maybe another Nextel mess.

          • d-rock

            The new spectrum up for auction is better than the 700 and Verizon and AT&T are going to be limited in how much they can buy so they can’t monopolize the industry as they have in the past.

          • http://idle0095.com/ IDLE0095

            Still the lower the Freq the better the penetration. No one can touch the 700 Mhz anymore because none is left.

          • d-rock

            This new spectrum is 600 Mhz..that’s why AT&T and Verizon are so pissed they can’t gobble it all up in a bidding war.

          • Daistaar

            I believe the same was said of Sprint-Nextel lol.

        • Hakim Leveille

          Agreed man, sprint sux

    • Ralph Bretz

      Check out his article.
      A sprint/T-Mobile merger, even though it sounds bad, will be good.

      http://www.forbes.com/sites/joanlappin/2014/03/13/softbanks-son-talks-his-sprintt-mobile-deal-directly-to-america/

      • Balthazar_B

        Take on, or join the club?