Negotiations seemingly fell apart earlier in the week, but T-Mobile and Sprint are once again working toward a merger. T-Mobile CEO John Legere and Sprint CEO Marcelo Claure spoke on Wednesday to express interest in continuing the process. The two carriers could reach an agreement “within weeks.”
Deutsche Telekom, according to the Wall Street Journal, sent SoftBank a revised offer that would give Sprint’s parent company more of say in the combined company’s operations.
The initial offer would’ve given Deutsche Telekom a controlling stake after the merger was completed with SoftBank mostly watching. SoftBank’s goal now is to maintain some type of power in the combined company. Sprint’s board of directors have received and analyzed the revised offer, but no approval has been made. Details of the revised offer are unknown.
Both carriers also can’t agree to a deal and expect a smooth road ahead. Their planned merger will face intense scrutiny from the United States government. Because T-Mobile and Sprint are among the four largest brands in the wireless industry, the government may prevent a deal from going through to protect consumers. The Trump administration, however, is more likely to approve such a merger than the previous administration.
T-Mobile and Sprint’s negotiations have been anything but predictable, so don’t be surprised if this duo calls things off and then tries again several more times. They want to merge, but it’s a matter of splitting the combined company between Deutsche Telekom and SoftBank that’s holding things up.