Right after the deal seemed all but sealed, a report from the Wall Street Journal is halting all rumors to a stop, claiming that Sprint let go of the idea of purchasing T-Mobile.
For many months we are hearing all kinds of rumors about Sprint's upcoming purchase of T-Mobile, but now it seems that while Sprint still wants to acquire the network, they are going to pass.
While Sprint will face a $1 billion fine to T-Mobile, since this was the agreement in case the deal doesn't work out, Deutsche Telekom, the owner of T-Mobile, will certainly not be happy as Sprint's offer was for $40 billion, and it had been trying to get rid of T-Mobile for a long time now.
The reason for Sprint's sudden exit is since it thought regulators would make too much of a hassle in order to complete the deal, and it doesn't want to face that. The negotiations have been going for a few months now, so this certainly comes as a surprise. The regulatory trouble will of course come due to the fact that such a deal would limit the market, and though needs to pass a full approval and check-through.
Sprint customers should especially be disappointed, as T-Mobile's prices tend to be lower and Sprint users were expected to get a price-slash as a result of the merger.
What do you think, were you shocked too? Are you happy or not?
Source: Wall Street Journal
While Sprint will face a $1 billion fine to T-Mobile, since this was the agreement in case the deal doesn't work out, Deutsche Telekom, the owner of T-Mobile, will certainly not be happy as Sprint's offer was for $40 billion, and it had been trying to get rid of T-Mobile for a long time now.
The reason for Sprint's sudden exit is since it thought regulators would make too much of a hassle in order to complete the deal, and it doesn't want to face that. The negotiations have been going for a few months now, so this certainly comes as a surprise. The regulatory trouble will of course come due to the fact that such a deal would limit the market, and though needs to pass a full approval and check-through.
Sprint customers should especially be disappointed, as T-Mobile's prices tend to be lower and Sprint users were expected to get a price-slash as a result of the merger.
What do you think, were you shocked too? Are you happy or not?
Source: Wall Street Journal
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