Another merger is getting closer to reality with news of the latest negotiations between Sprint and T-Mobile making headlines at Bloomberg. Sprint looks to acquire T-Mobile in a $32 billion deal that would create the third largest wireless carrier in the US.
The two carriers would boast 99 million subscribers combined, falling in behind AT&T's 108 million and Verizon's 120 million customers. SoftBank, which owns 80 percent of Sprint, is looking to create a more formidable competitor in the market. The news comes as other consolidation deals are being scrutinized in the industry, including AT&T's planned buyout of DirecTV.
Talk of a Sprint and T-Mobile merger has been rumored for years, however the current talks have brought the deal closer to reality. The preliminary agreement has Sprint buying T-Mobile for $40 per share in cash and stocks. Should the deal fall through a $1 billion breakup fee would be paid to T-Mobile.
Regulators at the FCC and Justice Department will examine the merger and determine whether or not to approve the deal. A previous attempt by AT&T to acquire T-Mobile was shot down by the Antitrust Division, forcing AT&T to abandon the deal and fork over $4 billion to T-Mobile.Should the Sprint acquisition of T-Mobile continue to move forward, an official announcement of the merger could be released in July.