Sprint nearing deal to purchase T-Mobile for $40 per share, according to reports

Sprint

Sprint and T-Mobile may actually, finally (no, really this time) be ready to announce a deal in which Sprint would take over its rival. According to reports from Bloomberg and Reuters, the carriers are nearing a deal where Sprint would buy T-Mobile for almost $40 per share, comprised of half stock and half cash. That's a total deal north of $32 billion, and a solid premium over the current price of T-Mobile, which has hovered around $34 per share ($27.5 billion valuation) recently.

Deutsche Telekom, the parent company of T-Mobile that currently holds 67 percent of its stock, reportedly wanted above $40 per share but has come to an agreement with Sprint's parent company SoftBank somewhere just shy of the number. In the end DT would retain roughly 15 percent of T-Mobile's stock after the deal, meaning Sprint would then have a controlling share of the company.

A breakup fee — which would be paid to T-Mobile in the event regulators shut the deal down — is also in discussion as part of the deal, and will be over $1 billion according to sources. This is much smaller than the $4 billion breakup fee that was paid to T-Mobile after AT&T failed to buy the carrier in 2011.

Source: Bloomberg; CNBC

Andrew Martonik

Economist. Android Central editor. Let's talk about mobile things.

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Sprint nearing deal to purchase T-Mobile for $40 per share, according to reports

35 Comments

This will be a terrible thing for the T-Mobile Customers. They will have to deal with Dan Hesse and his 'Reverse Midas Touch'. Will turn T-Mobile from 'gold' to 'S**T'.

I bet his middle name is Uturn and with all those U-Turns he has made and the money wasted because of them they could have been a biggest better Carrier with better coverage and better service.

Um...the stock has rebounded pretty well under Hesse and they beat everyone in customer service for something like 4 years running. Not just carriers but across the board.

Sprint is cursed.. they are like a drowning victim .. panicking and pulling everything around them down with them.. I love my Tmo.. this would be a horrible thing.. yuck.. makes me re-evaluate my carrier options.. will see what happens next few months..

Mark my words.. if you think the jumping ship was bad when ATT tried.. it will be a tsunami like wave leaving the ship if Sprint looks to seriously be getting Tmo..

Because he probably gets a big payday if tmo gets bought. You act like he is going to bad mouth something that will make him most likely millions? Nah

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As a T-Mobile customer, I'll be jumping ship immediately if this deal goes through. I refuse to support in Sprint anyway whatsoever after the terrible experience I've had with them.

I am a Verizon customer with no plans to change but I have to say I think all U.S. wireless customers have benefitted from T-Mobile's uncarrier approach. I am sad to see this deal going through as I really liked the disruptive force T-Mobile had become.

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Sprint blows and everybody knows it, PS, the FCC, and everyone else will shoot it down anyways

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Hopefully the FCC shoots it down. They way that they've been wh*ring themselves to these telecom companies though, I would be surprised to see them approve it.

Looking forward to this deal--my T-Mobile, Android-using wife will finally get an iPhone and join the rest of the family on Sprint! 6 phones, 2 iPads, unlimited everything with insurance for $200 a month (but I've been with them for over 10 years)!

I thought it was SoftBank trying to buy T-Mobile, not Sprint. SoftBank owns Sprint, if memory serves, and is trying to own T-Mo now too.

If Sprint does this doesn't this just hand the low-band spectrum auction to AT&T and Verizon? I don't understand the strategy here. Why would Sprint want to screw themselves and T-Mobile in future spectrum auctions?

On the other hand, I'd love to be using Sprint's smoking-hot 2500 spectrum, if only they'd get off their butts and build it out. Well, I'd love it if I didn't have to use CDMA.

If it goes thru it will be interesting to se if the Sprint iPhones will be able to use T-mo's network. because as of now, if I remember correctly, Sprint is locked to Sprint, and even if you are lucky enough get them to agree to unlock it, it still wont work on US GSM carriers.

Just check out the Sprint Carrier Forums, nothing but pissed off customers over their pathetic speeds and constant drop signals and calls. Sprint will ruin T-Mobile. Been a long time customer , very pissed off over this potential deal. Say it again, Sprint will ruin T-Mobile's fast data speeds and ruin what I feel is the best Carrier in the US.

TMo has fast data speeds? In Austin, AT&T nets me about a 12mbps gain over TMo on every device i have tested, across multiple locations. I wanted to support the magenta, but when you can't get a signal on the TMo network, it's hard to be a fan.

I'm more concerned about network coverage than anything else, like customer service. Don't get me wrong. I HATE bad customer service, but my crappy opinion of Sprint is based on their crappy coverage more than anything else. TMo should only improve that or offer an easy alternative...a GSM alternative. I'm all for that.

I had Sprint and Tmobile in the past. T-mobile's problem, at least in northern New Jersey, is the ridiculous amount of dead spots. Sprint, on the other hand, has good coverage but snail-pace data. I remember being frustrated that my HTC Evo "world's first 4g phone" had Wimax speeds slower than everyone else's 3.5g or even plain old 3g. I'm not too familiar with Sprint's LTE other than people complaining that it's similarly slow or not available in their area at all.

If the combined entity would use GSM networks and get rid of CDMA (by converting it to LTE), and keep T-Mobile's Un-carrier thing going, then I might be OK with it. Otherwise, I'm leaving and I'm going to have to go with some GSM MVNO like Straight Talk, Red Pocket, H2O Wireless, Simple Mobile or whatever. I refuse to have anything to do with Sprint or CDMA whatsoever, and AT&T and Verizon are just too damn expensive. So I'd have to go the MVNO route.

I have my 5s through Sprint and I honestly have to say I haven't had one issue with sprint or their LTE speeds no dropped calls or anything of the sort.

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I'm not sure what's going on, but i know for a fact, Sprint is the "Worse" carrier for iPhones, poor T-Mobile's customers.

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