A recent rumor claims that Sprint Corp (NYSE:S) and T-Mobile Us Inc (NASDAQ:TMUS) may announce a merger deal in the near future.
According to this rumor, Deutsche Telekom and SoftBank are hammering out details of a possible deal to merge the two wireless companies. Deutsche Telekom is the majority owner of T-Mobile Us Inc and SoftBank is the majority shareholder of Sprint Corp.
The rumor claims that the two companies may reach a merger agreement as soon as next week. The terms that are currently being discussed is how voting rights will be handled if Sprint Corp and T-Mobile Us Inc were to become a single company.
While these talks are reportedly taking place, this doesn’t mean that the two companies will agree to a merger. All parties involved in the merger discussions are also refusing to comment on the most recent rumors, reports Reuters.
Rumors that Sprint Corp and T-Mobile Us Inc are considering a merger have been going around for a couple of weeks now. A possible merger between the two wireless companies would give them better abilities to handle upgrading their networks to 5G. It could also provide a true challenge to wireless rivals Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T).
This also isn’t the first time that Sprint Corp and T-Mobile Us Inc have been talking about a merger. A similar process started in November of last year, but never came to fruition. This was due to SoftBank backing out of a deal at the last minute.
S stock was up 8% and TMUS stock was up slightly as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
