Market Overview

T-Mobile CFO On Possible Merger: 'The Most Logical Partner Is Sprint'

Share:
T-Mobile CFO On Possible Merger: 'The Most Logical Partner Is Sprint'

In a deal that would inevitably shake up the telecom industry, everyone seems to be asking what company Sprint Corp (NYSE: S) could acquire.

Sprint parent company Softbank Group Corp (OTC: SFTBF)'s CEO Masayoshi Son previously expressed that he would prefer a deal with T-Mobile US Inc (NASDAQ: TMUS). The Bellevue-based communications company, which has become the fastest growing U.S. wireless provider, has now come out and stated that a deal with Sprint is the most makes the most sense for the company.

Sprint 'The Most Logical Partner'

“The most logical partner is Sprint,” said T-Mobile’s chief financial officer Braxton Carter at a conference in New York on Thursday.

A move to combine the Nos. 3 and 4 wireless carriers in the U.S. is starting to look like an attractive option for both parties and is “even more true today because of Sprint’s precarious financial position,” Carter added.

A combination of the two would enable both parties to work for the benefits of consumers and businesses everywhere, according to Carter.

After the gag order preventing wireless companies to talk about mergers was lifted on April 27, speculation that a Sprint and T-Mobile combination is coming soon has been heating up. Sprint’s CEO Marcelo Claure has been in Washington, D.C., this week for meetings with regulators, according to a report from the Seattle Times.

Weighing The Odds

The odds of the deal, which was blocked under the Obama administration in 2014, received an immediate bump following the election of the current administration, with hopes that it would have a more tolerant approach to the wireless industry.

While the deal still needs to be approved by T-Mobiles parent company Deutsche Telekom AG(ADR) (OTC: DTEGY), with both sides now speaking favorable about a potential deal, it appears something may be happening sooner than later.

Related Links:

Sprint Stock Is Soaring; Possible Merger In The Works?

Signs A Sprint, T-Mobile Tie-Up Is Gaining Momentum

________
Image Credit: CC BY-SA 3.0, via Wikimedia Commons

Posted-In: Deutsche Telekom Masayoshi SonM&A News Rumors Tech Media Trading Ideas

 

Related Articles (S + DTEGY)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
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.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Was Mark Fields Given Enough Time To Lead Ford? Cramer Doesn't Think So

5 Reasons Apple Could Make It To A Trillion-Dollar Market Cap In One Year's Time