Published: Sun, November 05, 2017
Science | By Eileen Rhodes

Mobile, Sprint call off merger attempt

Mobile, Sprint call off merger attempt

The Wall Street Journal, citing people familiar with the offer, said that T-Mobile CEO John Legere and Sprint CEO Marcelo Claure met on Wednesday, where Legere reiterated that Deutsche Telekom didn't want the deal to fall apart. 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. The telecomm giants said that they have stopped negotiating and will remain independent entities. It seemed this most recent deal was doomed to failure, as well. Its wide portfolio and clout have made it a good fit to own and operate Sprint from above thus far, though that was not always the case; at one point, Masayoshi Son was very open about the fact that the company was losing money thanks to Sprint.

Germany's Deutsche Telekom (which own T-Mobile) and Japan's SoftBank (owners of Sprint) couldn't come to terms on who would control the combined companies so there was no way to go forward.

"However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance and track record", he added.

Shares of Sprint and T-Mobile tumbled Monday after rumors emerged that merger talks between the two companies were fizzling.

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The companies expected to have a better shot at the merger this year under the Trump administration.

Analysts said an end to talks to T-Mobile would leave debt-laden Sprint without the scale needed to invest in its network and to compete in a saturated market.

Sprint "look [s] forward to continuing to take the fight to the duopoly and newly emerging competitors", Claure said. "We won't stop now".

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