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June 4, 2014, 6:33 p.m. EDT

Sprint, T-Mobile move closer to $50 billion merger

Sprint would buy T-Mobile for around $40 a share in deal that likely would face regulator scrutiny

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By Ryan Knutson


Bloomberg

Sprint Corp. /zigman2/quotes/208685669/composite S +1.11%   and T-Mobile US Inc. /zigman2/quotes/204659678/composite TMUS -1.45%   have agreed on the broad terms of a merger worth around $50 billion and are working toward a final agreement, people familiar with the matter said.

Under the framework, Sprint would acquire T-Mobile for around $40 a share in a deal that could happen early this summer, the people said.

A deal could still fall through, but if completed would combine the country’s third and fourth largest wireless operators, creating a bigger competitor to market leaders Verizon Communications Inc. /zigman2/quotes/204980236/composite VZ -0.45%  and AT&T Inc. /zigman2/quotes/203165245/composite T +1.42%   but leaving consumers with fewer choices for service.

A deal would face strong opposition from regulators and a lengthy antitrust review, and Sprint would pay T-Mobile more than $1 billion in cash and other assets if it is shot down, the people said.

T-Mobile’s largest shareholder, Germany’s Deutsche Telekom AG /zigman2/quotes/201442689/delayed XE:DTE +0.14%  , would retain a stake of 15% to 20% in the new company, the people said. The deal would be worth around $50 billion including debt, the people said.

The companies are also considering forming a joint venture to bid together in upcoming auctions of wireless airwaves currently held by television broadcasters, the people said.

Read the full article at WSJ.com.

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/zigman2/quotes/208685669/composite
US : U.S.: NYSE
$ 42.68
+0.47 +1.11%
Volume: 0.00
Jan. 14, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.39 billion
Rev. per Employee
$198,860
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/zigman2/quotes/204659678/composite
US : U.S.: Nasdaq
$ 108.52
-1.60 -1.45%
Volume: 0.00
Jan. 14, 2022 4:00p
P/E Ratio
40.56
Dividend Yield
N/A
Market Cap
$135.55 billion
Rev. per Employee
$1.06M
loading...
/zigman2/quotes/204980236/composite
US : U.S.: NYSE
$ 53.28
-0.24 -0.45%
Volume: 0.00
Jan. 14, 2022 4:00p
P/E Ratio
10.02
Dividend Yield
4.80%
Market Cap
$220.59 billion
Rev. per Employee
$1.02M
loading...
/zigman2/quotes/203165245/composite
US : U.S.: NYSE
$ 27.18
+0.38 +1.42%
Volume: 0.00
Jan. 14, 2022 4:03p
P/E Ratio
223.70
Dividend Yield
7.65%
Market Cap
$194.09 billion
Rev. per Employee
$754,770
loading...
/zigman2/quotes/201442689/delayed
XE : Germany: Xetra
15.97
+0.02 +0.14%
Volume: 5.09M
Jan. 18, 2022 3:15p
P/E Ratio
14.12
Dividend Yield
4.01%
Market Cap
€79.28 billion
Rev. per Employee
€474,972
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