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Sprint, T-Mobile Spike Higher On Updated Merger Conditions; FCC's Pai Will Recommend Approval

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Sprint, T-Mobile Spike Higher On Updated Merger Conditions; FCC's Pai Will Recommend Approval

Sprint Corp (NYSE: S) and T-Mobile (NASDAQ: TMUS) announced a series of changes to their $26 billion deal. United States regulators are expected to announce agreement on the conditions necessary to approve the merger, Reuters reported.

According to latest reports, the Federal Communications Commission will not formally approve the merger on Monday and will need to draft an order, two people briefed on the matter told Reuters. The deal hit a snag in April when the DoJ’s antitrust division expressed concerns with the planned all-stock deal that would combine the nation’s third- and fourth-largest mobile carriers.

FCC chairman Ajit Pai said in light of new merger commitments from the two companies, he will “recommend to my colleagues that the FCC approve” the deal.

T-Mobile CEO John Legere shared a video that laid out the conditions:

Sprint traded higher by 25 percent to $7.77 per share, while T-Mobile traded higher by 5 percent to $79.10.

Related Links:

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Guggenheim: T-Mobile Home Broadband Aimed At Boosting Sprint Merger, Not A Threat To Cable

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