Market Overview

Will They Or Won't They? Conflicting Reports Muddy The Waters For Potential Sprint-T-Mobile Merger

Will They Or Won't They? Conflicting Reports Muddy The Waters For Potential Sprint-T-Mobile Merger
JPMorgan's Q3 Wireless Cheat Sheet
10 Years Of Android: How The Operating System Reached 86% Market Share
Related S
Elastic's IPO: What You Need To Know
Robinhood Responds To Allegations Of Shortchanging Customers

Is Sprint Corp (NYSE: S) parent company Softbank wants to call an end to the ongoing merger discussions with T-Mobile US Inc (NASDAQ: TMUS) and its parent company Deutsche Telekom, The Nikkei reported.

Other media reports, including CNBC, are suggesting merger talks haven't come to an end just yet, although it may not be progressing as planned.

So which stories are accurate? For the time being, it may be anyone's guess. Neither company has publicly commented on the conflicting reports.

Neither Sprint nor T-Mobile hosted a live post-earnings conference call for very obvious reasons, Morgan Stanley's Simon Flannery said in a research report. The Nikkei's report "echoes a similar announcement" in 2014, in which wireless M&A activity was shot down amid regulatory opposition and could now reignite an already fierce wireless war.

Should a price war intensify, T-Mobile is best positioned as a standalone company; it is the only one among the big four major telecom companies that's growing its revenue. Investors should also expect all of the wireless carriers to "fight even harder" for iPhone switchers this holiday season.

Finally, tower stocks rallied after The Nikkei's report, which reduces headline risk and churn fears, the analyst also wrote. This creates a scenario in which tower stocks can see "decent upside."

Related Links:

What Would A T-Mobile-Sprint, All-Stock Merger Look Like, And Is It Likely?

Here's Why Wireless M&A Shouldn't Weigh On SBA

Latest Ratings for TMUS

Jun 2018Wells FargoUpgradesMarket PerformOutperform
Apr 2018CitigroupMaintainsBuyBuy
Apr 2018Wells FargoDowngradesOutperformMarket Perform

View More Analyst Ratings for TMUS
View the Latest Analyst Ratings

Posted-In: Deutsche Telekom Morgan StanleyAnalyst Color News Rumors M&A Analyst Ratings Media Best of Benzinga


Related Articles (S + TMUS)

View Comments and Join the Discussion!
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Mid-Day Market Update: Trex Rises After Strong Q3 Results; Under Armour Shares Slide

Here's The Scariest Part About AK Steel's Q3 Miss