One common concept many financial advice websites adhere to is to adapt to the times, and, if needed, work with other people who has skills that can help with growth.
It would seem that Sprint and T-Mobile agree, as they’ve recently just agreed to a new all-stock merger that will result in a combined corporate entity with an approximate value of $146 billion, debt included, one that will act as a more formidable major wireless carrier serving at least 100 million customers.
Several reports regarding the transaction claim that the deal was near to closing late April 2018. Notably, this is the third time the two have tried to work together. Their first attempt was back in 2014, which was rejected after federal regulators sent signals that it would never come to pass. In November 2017, they tried again, only to cancel that attempt after they couldn’t agree on control.
In early April 2018, however, they tried again, and this attempt seems to have ironed out the issues, with T-Mobile executives to handle the highest part of operations, which will take T-Mobile’s name. T-Mobile’s CEO, John Legere, will run the company with the same responsibilities, and so will T-Mobile COO Mike Sievert and Chairman of the Board Tim Höttges. SoftBank, the owner of Sprint, will have its CEO, Masayoshi Son, work alongside Sprint’s CEO Marcelo Claure serve on the new company’s board.
They say that they were able to make this joint venture because they took advice from financial advice websites and their many, many advisors, including Raine Group LLC and JP Morgan, taking note that both companies need each other to grow. With the 5G era coming in, T-Mobile and Sprint have accepted that they need to work together to create a company with the culture and capabilities to bring in positive change.
The next biggest issue for the merger will be acquiring approval from the federal government. Usually the government tends to turn down mergers that remove competitors in an industry, with T-Mobile as the third largest wireless carrier in the US, with Sprint being the fourth. Both say that this merger is needed for survival, as well as developing 5G services.