T-Mobile and Sprint are reportedly talking about a merger again. The latest report comes out of the Wall Street Journal, which notes that this is the third time in four years the two have discussed such a move.
This time around, no one has any idea what’s different about these talks or how things have changed. In other words, we aren’t placing any bets over this actually happening this time. In fact, I wouldn’t be shocked if this kicks off another couple-of-month-long rounds of reporting, followed by another walk-away by one of the parties. Again, these talks have been going on for years.
You may recall last year when Sprint pulled the plug at the last minute on a supposedly agreed-to-deal because their board (Softbank) didn’t want to give up control to T-Mobile (Deutsche Telekom). Are they now willing to do that – give up control? Or what’s the angle this time? We don’t know.
Should the two combine, Sprint and T-Mobile would instantly become the #2 carrier in the US, ahead of AT&T. The merger would give them around 100 million subscribers compared to AT&T’s 93 million. Verizon would still be king with around 116 million.
We’ll let you know if anything changes here.
// Wall Street Journal