According to the reports, SoftBank Chairman Masayoshi Son will be making a bid to buy Charter Communications, Inc. later this week. The bid is Son’s response to CHTR rejecting an offer to merge it with Sprint Corp (NYSE:S), which it has control of.
Any deal made by SoftBank for CHTR stock would have to be a large one. Charter Communications, Inc. is currently the second-largest cable provider in the United States. It also has a market value of $101 billion. Estimates from JPMorgan claim that a merger of CHTR and Sprint would bring synergies of $2 billion per year.
The source of the reports claim that Softbank may change its plans to make a bid for Charter Communications, Inc. Even if this happens, that doesn’t mean the company doesn’t have other plans for Sprint. This includes the possibility to combining it with T-Mobile US Inc (NASDAQ:TMUS) to create a stronger rival for AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ), reports Bloomberg.
The increase in interest between cable and wireless companies comes due to changes in regulations. This includes many regulations that stopped these types of merger from occurring being lifted back in April.
CHTR stock was up 5% as of Monday afternoon and is up 35% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.