As reports surfaced late last week that Softbank and Deutsche Telekom were nearing an official agreement to merge US wireless giants Sprint and T-Mobile, the latest developments have revealed the financial details of the transaction.
According to reports, the companies have agreed that T-Mobile will be acquired for $32 billion. Unnamed sources who were briefed on the case revealed the news Wednesday.
Reports note that the agreement is still tentative, however.
Japan-based Softbank, which controls Sprint, and Germany-based Deutsche Telekom, which controls T-Mobile, have been mulling a merger that would send shockwaves through the US wireless industry for several years. Their plans, which now seem to be solidifying, have already sparked widespread debate as to how the tie-up would affect competition.
A merger between Sprint and T-Mobile, the nation’s third- and fourth-place wireless companies, respectively, would reduce the number of competitors from four to three.
Full content: DealBook
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