Sprint is working on making a bid for T-Mobile U.S., according to sources with The Wall Street Journal. If the merger takes place, there would be three giant telecommunications companies in the U.S. rather than four. Sprint is researching regulatory concerns and may launch a bid in the first half of next year. The deal could be worth more than $20 billion depending on the size of T-Mobile stake that Sprint tries to buy.
It was only just a few months ago that Japan-based SoftBank Corporation acquired Sprint and T-Mobile merged with MetroPCS Communications. A merger between the third and fourth largest U.S. telecommunications company would invite opposition from antitrust authorities, but would create a sizable opponent against Verizon Wireless and AT&T.
Two years ago, the Justice Department blocked AT&T’s $39 billion offer to buy out T-Mobile. SoftBank CEO Masayoshi Son is spearheading the efforts and he is known for making aggressive acquisition moves. SoftBank owns over 80% of Sprint today.
Deutsche Telekom owns around 67% of T-Mobile US and is interested in selling their equity. T-Mobile U.S. went public in May after merging with MetroPCS. T-Mobile US has a marketing capitalization of over $20 billion.
If Sprint and T-Mobile merge, they would have around 53 million postpaid subscribers. AT&T has 72 million postpaid subscribers and Verizon Wireless has 95 million.