According to recent reports, Sprint and T-Mobile are in preliminary talks about a possible merger of the two companies. These reports come from unnamed individuals that are close to the matter.
Sprint and T-Mobile’s discussions reportedly began this month after exclusive negotiating restrictions with Comcast Corporation (NASDAQ:CMCSA) and Charter Communications, Inc (NASDAQ:CHTR) ended in July. One source claims that a possible merger deal between S and TMUS won’t be announced until later in 2017.
A possible merger between Sprint and T-Mobile could create a better competitor for rival wireless companies AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ). The two were planning to merge back in 2014, but regulators shot the idea down. However, a new administration on the White House may give the two companies the chance to merge, reports Bloomberg.
Sprint’s desire to merge with T-Mobile comes as parent company SoftBank Group Corp (OTCMKTS:SFTBF) looks to expand its business. This includes it reportedly making a bid for Charter Communications. SFTBF previously wanted to merge CHTR with Sprint, but the cable company shot the offer down.
SoftBank’s desire to merge more of its companies together is likely the result of looser regulations. This includes changes back in April that got rid of restrictions on the types of mergers that SFTBY is reportedly interested in making.
S stock was down 1% and TMUS stock was down slightly as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.