SoftBank Group plans to break off negotiations toward a merger between subsidiary Sprint and T-Mobile US amid a failure to come to terms on ownership of the combined entity, dashing the Japanese technology giant’s hopes of reshaping the American wireless business.
SoftBank is expected to approach T-Mobile owner Deutsche Telekom as early as Tuesday, October 31, to propose ending the talks. They had reached a broad agreement to integrate T-Mobile and Sprint — the third- and fourth-largest carriers in the US — and were ironing out such details as the ownership ratio.
The German parent company had insisted on a controlling stake, according to a source familiar with the situation. Some at SoftBank were initially amenable as long as the Japanese company retained some influence. But SoftBank’s board discussed at a meeting Friday that the company would not give up control. The decision was made Monday to call the talks off.
Sprint’s position in the US mobile market is weaker than its No. 4 ranking would suggest. The carrier sits well behind the top two of Verizon Communications and AT&T in scale and subscribers. The hope was that a merger with T-Mobile would reinforce Sprint’s customer base enough to let it challenge the duopoly while allowing for more efficient network investment.
SoftBank tried to buy T-Mobile in 2014, but the idea was abandoned amid opposition from regulators under then-President Barack Obama. The failure of this latest effort leaves Sprint, which was acquired by SoftBank in 2013, to keep working toward a turnaround on its own.
Full Content: Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI