News is coming out of CNBC that a merger between T-Mobile and Sprint may be in the works. “T-Mobile and Sprint are in active talks about a merger, according to people close to the situation.” This would be another major merger this year with the likes of Bayer and Northrup already pursuing their own major takeovers.
People close to the situation stress that negotiators are still weeks away from finalizing a deal and believe the chances of reaching an agreement are not assured. The two sides have not yet set an exchange ratio for a deal, but are currently engaged in talks to hammer out a term sheet.
While the deal is in its infancy, the ramifications would be massive. There are also questions to be asked of whether or not the deal would constitute a monopoly. CNBC says that “the biggest issue is whether any merger between the No. 3 and No. 4 wireless carriers in the nation would be approved by antitrust regulators. The risk of rejection by the Department of Justice will play an important role in the final decision made by both sides as to whether they will proceed with a deal.”
The news is still fresh and any outcome could be weeks away but investors should keep there eyes out for any new information on what could be a game changing deal for telecom.
Read more at cnbc.com to find out all the details and don’t forget to subscribe to our newsletter to get updates about stories such as this delivered straight to your email.
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