Categories Other Industries, U.S. Markets News
Mammoth T-Mobile deal to buy Sprint may close by the first quarter of 2019
The $26-billion deal of T-Mobile US Inc’s (TMUS) majority owner taking over Sprint Corp (S) in a move to unite the third and fourth largest US telecom firms is likely to close by the first quarter of 2019.
The US Federal Communications Commission (FCC) and the Department of Justice are now examining the deal.
Chief Financial Officer of T-Mobile, Braxton Carter, said that depositions at the DoJ have commenced and would be wrapped up in a few weeks.
Back in April, Deutsche Telekom AG, which owns a majority in T-Mobile, agreed to buy rival Sprint. The deal was then expected to close in the first half of 2019.
Once the deal closes, both companies are of the view that the merged entity would be better places to take on the competition from AT&T (T) and Verizon (VZ).
Back in August, there were reports of the merger facing opposition from a number of quarters. Dish Network (DISH) requested the Federal Communications Commission not to approve the merger, citing that it would be better if T-Mobile and Sprint operated separately. Dish also argued that there wasn’t any sufficient proof that the pros of the partnership — especially the 5G benefits — surpassed the cons. Dish also said the merger could have a negative impact on pricing.
A few reports also suggested that Wells Fargo and Cowen believed the probability of the merger to complete has gone down due to various headwinds such as a potential blockage by the Department of Justice and the Federal Communications Commission; rising government concern/rivalry with China; and the company’s unclear period on 5G investment without government persuade. However, this latest announcement seems to be clearing the air.
We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Key highlights from Exxon Mobil Corporation’s (XOM) Q3 2024 earnings results
Exxon Mobil Corporation (NYSE: XOM) reported its third quarter 2024 earnings results today. Total revenues and other income remained relatively flat at $90 billion compared to the same period a
AAPL Earnings: Apple Q4 2024 sales rise 6% YoY, beat estimates
Apple Inc. (NASDAQ: AAPL) reported an increase in revenues for the fourth quarter of 2024. The top line came in above estimates. The gadget giant generated revenues of $94.9 billion