Mobile, Sprint Abandon Mega-Merger Talks

  • Mobile, Sprint Abandon Mega-Merger Talks

Mobile, Sprint Abandon Mega-Merger Talks

The combined user base of Sprint and T-Mobile would have given them a total of 130 million subscribers, and a fighting chance to become the largest carrier in the United States, especially on the strength of T-Mobile's new growth strategies that are helping them add subscribers in the millions every quarter while the others still struggle to attract new customers and retain existing ones.

T-Mobile, on the other hand, has been showing stellar growth since it started the "Un-carrier" campaign in March of 2013.

The fact that both the companies announced the canceled collaboration at the same time, may indicate that there can be a future discussion between the companies about merging once again. The decision was made due to both parties being "unable to find mutually agreeable terms". News of the merger falling through due to a breakdown in power management is not entirely shocking, given the massive dose of personality that CEO John Legere has injected into T-Mobile over his five year tenure; to lose any control over the company's management or image would nearly certainly break any talk of a merger, though it's still unclear exactly how things unfolded to lead to where we are today. Nonetheless, Claure said that "we have agreed that it is best to move forward on our own".

"To really take the kind of next step from a business that has been stabilized to a business that has been growing is going to require a new more intense investment phase", Mark Stodden, telecom analyst at Moody's, said about Sprint.

Reports suggest that a major hurdle to the merger wasn't Sprint or T-Mobile directly, but rather the their ownership.

Had Sprint and T-Mobile successfully combined forces, the resulting carrier-whatever the name may have been-would have had more than 130 million USA subscribers.

It's possible that the two sides will come to an agreement within weeks, claims today's report.

A source told Reuters in July that SoftBank was considering an acquisition offer for Charter in a deal where it would combine the cable company with Sprint.