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Sprint, T-Mobile Discuss Merger

Sprint, T-Mobile Discuss MergerSprint, T-Mobile Discuss Merger

Sprint Corp has restarted talks to merge with T-Mobile US Inc , people familiar with the matter said on Tuesday, the latest effort to bring together the fourth and third largest US wireless carriers, Reuters reported. The combined company would have more than 127 million customers and could create more formidable competition for the No. 1 and No. 2 wireless players, Verizon Communications Inc and AT&T Inc , amid a race to expand offerings in 5G, the next generation of wireless technology. T-Mobile’s and Sprint’s previous round of negotiations ended in November over valuation disagreements. Since then, Sprint’s shares have lost more than a fifth of their value amid questions about how the company can compete effectively under the weight of its long-term debt of more than $32 billion. Sprint’s majority owner, SoftBank Group Corp., has been looking to trim its debt, which reached 15.8 trillion yen ($147 billion) as of the end of December. It has said it is planning to raise cash by taking its Japanese mobile phone unit public this year.

 

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