Sprint and T-Mobile USA are reportedly discussing the possibility of a merger. In the merger Deutsche Telekon AG would sell T-Mobile USA to the Sprint Nextel Corp, and in exchange would own a portion of the combined entity.
According to Businessweek, the talks have hit a stand still because the two companies are unable to agree on the value of T-Mobile. The carrier had a drop in profits in the fourth quarter of 2010, and has seen a drop in customers that is likely to affect profits in the future as well.
and T-Mobile are currently the third and fourth largest wireless providers in the US, trailing behind Verizon and AT&T. Instead of merging with Sprint, T-Mobile is also reportedly considering buying wireless spectrum from Clearwire, a move that would better its position in the mobile marketplace.
What do you think about the potential of a T-Mobile/Sprint merger?