Mobile US, Sprint Working To Salvage Merger

Mobile US, Sprint Working To Salvage Merger

The companies said they ended talks after they were "unable to find mutually agreeable terms".

Sprint president and CEO Marcelo Claure said: "While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination".

"The prospect of combining with Sprint has been compelling for a variety of reasons", said T-Mobile President and CEO John Legere in a statement. He said Sprint has agreed it is best to move forward on its own with "significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth".

The Wall Street Journal reports that T-Mobile and its parent company Deutsche Telekom have tweaked their offer, though the exact terms remain unclear.

Sprint and T-Mobile previously discussed a merger in 2014 but scrapped it because of concerns about regulatory challenges from the Obama administration. Merger talks then seemed to break down, only to be revived again a couple days ago.

In 2014, the nation's No. 3 and No. 4 wireless providers considered joining forces but eventually called off merger talks because it was believed the USA regulatory hurdles under the Obama administration were too steep.

But in a joint statement Saturday, Sprint and T-Mobile said they are calling off merger negotiations for the foreseeable future. Claure, the Sprint CEO, is also a member of SoftBank's board. Legal experts also said earlier this year that it was hard to predict whether the current administration would be more receptive of a deal.

"T-Mobile does not need a merger with Sprint to succeed, but Sprint might need one to survive", Piecyk wrote in an October research note.

A few weeks later, Legere said he was open to "various forms of consolidation" when asked about a potential merger with Sprint and SoftBank under the Trump administration.

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