Sprint and T-Mobile M&A talks resume
SoftBank CEO Masayoshi Son returns to T-Mobile over a possible merger with the US arm of the mobile company
SoftBank boss Masayoshi Son has returned to
discussions on merging Sprint with T-Mobile US, controlled by Deutsche Telekom.
has reportedly lined up roughly $65 billion in financing for a potential deal
with cable operator Charter, the second largest in the US. That merger would
allow Sprint to be able to offer a services such as home broadband and phone
Sprint’s mounting debt maturities
put further pressure on Son to find a partner for the company. Sprint has
reportedly lost billions since SoftBank brought a majority of the company in
2013 and it has publically stated that a merger would create a large enough
wireless carrier to take on the likes of AT&T and Verizon.
idea of a merger was ruled out by US regulators in 2014 under the Obama
administration but with the new Trump administration in place, preliminary
discussions began again earlier this year.
Only last week, Sprint recorded a
loss of 39,000 customers in the latest quarter, despite its attempts to stem
subscriber losses by cutting costs and offering new deals such as unlimited
data to new subscribers. The shortfall occurred as Sprint’s rivals added users
for the same period.
SoftBank has also been rumoured to
have expressed interest in merging with satellite broadcaster Dish Network, causing
shares in both companies to spike.