Sprint Board Of Directors Rejected $8 Billion Acquisition Of MetroPCS Hours Before It Was Announced

Posted Feb 25, 2012

According to CNBC, Sprint and MetroPCS were a few hours from announcing an $8 billion merger until Sprint’s executive board rejected it. They even had the sign-off from Sprint CEO Dan Hesse. The deal was being hammered out for months despite Sprint’s spectrum complexity including the switch to LTE, Clearwire’s financial problems, and the trouble with LightSquared. Most of MetroPCS’ spectrum lies in the AWS band, which would have made the integration of both companies even more complicated. Sprint does not currently use AWS. MetroPCS just reported their earnings this week and announced 9.35 million subscribers at the end of Q4. Even with Sprint’s 55 million subscribers, the new company would still be well below AT&T and Verizon. However the acquisition would be a major threat to T-Mobile. [The Verge]