Home >> More Business news >> This Article

Sprint Merger with T-Mobile Inches Closer in the USA

Published on:

Note -- this news article is more than a year old.

A merger between the USA based mobile networks, Sprint and T Mobile USA has reportedly moved much closer following a deal between the two company's major shareholders.

Germany's Deutsche Telekom is reported to have agreed to sell its 67% stake in T-Mobile USA to Softbank, which owns a majority stake in Sprint.

A buyout proposal was made by Softbank chairman Masayoshi Son in a meeting with Deutsche Telekom a couple of weeks ago, Reuters reported on Thursday, citing Japan's Kyodo.

Deutsche Telekom was said to have been positive about such a transaction.

Speculation that a deal was imminent has been mounting all year, and was fueled by Deutsche Telekom's decision to shift the holding company that owns its T-Mobile stake from Germany to the Netherlands. Such a move would reduce the tax bill if a sale takes place.

SoftBank's CEO Masayoshi Son was also recently reported to have held talks with at least five banks to finance a possible bid.

He is said to be looking to raise around USD20 billion for the takeover bid.

However, such a deal would face an enormous regulatory barrier, and is likely to be difficult to consummate without considerable concessions to the US regulators.

Sign up for our free email news alerts

Sample Copy

Tags: t-mobile usa  sprint  softbank  deutsche telekom  USA