U.S. District judge to reportedly clear $26.5B T-Mobile-Sprint merger
Category: #headlines  By Hrishikesh Kadam  Date: 2020-02-11
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U.S. District judge to reportedly clear $26.5B T-Mobile-Sprint merger

T-Mobile, the third-largest wireless carrier by subscribers in the U.S., has been awaiting a decision from a federal judge regarding its $26.5 billion megamerger with Sprint. The wait for Sprint and T-Mobile could soon be over.

According to recent reports, a U.S. District judge is slated to rule in favor of T-Mobile and Sprint in a lawsuit filed by several U.S. State attorneys general to block the merger. The decision is expected to be made public on Tuesday, February 11, 2020.

The merged company would compete with Verizon and AT&T along with other emerging carriers in the U.S. wireless industry.

Sprint stock rose 60% while T-Mobile stock jumped 8% in afterhours trading on Monday following the reports.

Apparently, the transaction can’t be closed until the California Public Utilities Commission approves it, which still hasn’t happened nearly two years after its announcement.

The U.S. carriers along with television provider Dish Network, which is reportedly awaiting approval to build a new national network, haven’t yet seen the judge’s ruling.

The details as well as potential closing conditions of the deal are critical to ensuring that the transaction makes sense to all parties. The carriers claim that a merger between America’s third and fourth-largest wireless network providers would accelerate the timeline for the deployment of 5G.

The carriers also reportedly claimed that there was sufficient competition in the country’s wireless market, referring to Dish, Comcast, and other cable and satellite companies that currently plan to offer their own subscription plans.

Sources familiar with the development reported that Sprint and T-Mobile had agreed to create more competition by establishing a fourth wireless carrier that will be run by Dish Network.

Also read: U.S. state AGs are suing to stop the $26.5B T-Mobile-Sprint merger

Dish reportedly plans to take over Boost Mobile, which is currently owned by Sprint, to build a 5G network. T-Mobile said it will let Dish use its network over the next few years as Dish sets up its business.

It appears that the Sprint-T-Mobile merger is seen by many as a bellwether for the future of America’s wireless industry. In December, multiple states had attempted to stop the deal, alleging the merger violates anticompetitive law and would raise prices for customers.

The U.S. Department of Justice (DOJ) and the Federal Communications Commission (FCC) had previously approved the transaction after reaching a side deal with Dish.

 

Source credit: https://www.cnbc.com/2020/02/10/sprint-stock-up-40percent-after-report-that-us-district-judge-is-set-to-rule-in-favor-of-its-deal-with-t-mobile.html

 

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Hrishikesh Kadam    

Hrishikesh Kadam

A graduate in electronics and telecommunication engineering, Hrishikesh Kadam has always found writing fascinating. Driven by a never-ending passion for content creation combined with a bit of experience in writing personal blogs, Hrishikesh blends his technical knowl...

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