Skip to main content
  1. Home
  2. Mobile
  3. News

Sprint is currently securing funding for a T-Mobile takeover bid

By
Image used with permission by copyright holder

According to a report published by Bloomberg earlier today, wireless service provider Sprint is currently attempting to secure financing that will fund a takeover bid to purchase T-Mobile. According to a source familiar with the process, Sprint CFO Joe Euteneuer and treasurer Greg Block are meeting with banks to make “debt arrangements” prior to submitting an offer for T-Mobile. Assuming the Sprint wants to move forward with the takeover plan, lenders will be aware of the situation and create a financial deal that allows Sprint to borrow money for the purchase.

Assuming financial arrangements are met, a formal takeover bid for T-Mobile will be submitted during June or July 2014. The bid will be made by SoftBank Corp’s Masayoshi Son, the CEO of the Japanese telecommunications and Internet corporation. SoftBank Corp owns approximately 80 percent of Sprint. According to analysts, the combination of the third and fourth largest wireless service providers will allow Sprint to compete more effectively with Verizon and AT&T, specifically by reducing costs and expanding reach across the United States.

Recommended Videos

However, approval of the merger will require a review by the Federal Communications Commission and the Department of Justice. Interestingly, U.S. regulators blocked a similar takeover of T-Mobile by AT&T during 2011, but Sprint representatives believe that they can develop a convincing argument that will motivate regulators to put a stamp of approval on the merger. In addition, Sprint will have to convince banks that taking on nearly $9 billion debt that’s been racked up by T-Mobile is a solid plan.

When the bid is formally submitted to T-Mobile, it will have to be approved by the boards of Sprint, T-Mobile, SoftBank Corp and Deutsche Telekom. It’s unlikely that the process will move along quickly and could continue through the end of the year if any board members are resistant to the deal.

Editors' Recommendations

Topics
Mike Flacy
Mike Flacy
Contributing Editor
By day, I'm the content and social media manager for High-Def Digest, Steve's Digicams and The CheckOut on Ben's Bargains…
T-Mobile’s newest plans are exciting for new (and old) customers
The T-Mobile logo on a smartphone.

T-Mobile has just unveiled a new set of plans and perks to help both new and current customers break free of lengthy device contracts while guaranteeing you'll be able to get the best deals available on phone upgrades every two years.

Significantly, with the new plans, the "Un-carrier" promises equal treatment for all customers, whether they're coming over from another carrier or have been using T-Mobile's services for years. That's in contrast to the limited-time offers of its rivals, which often ignore their most loyal subscribers in an effort to entice others to switch carriers.

Read more
T-Mobile’s 5G is still unmatched — but have speeds plateaued?
Woman holding up smartphone with speed test results on Verizon 5G Ultra Wideband network.

Each time a new analysis of mobile network performance gets published, it’s almost a given that we’ll see T-Mobile leading the pack in terms of delivering the fastest 5G speeds. After all, the “Un-carrier” had a massive lead in deploying its 5G networks — and it hasn’t been resting on its laurels.

However, its competitors haven’t been sitting still either. While Verizon may have been starting from behind, it’s been aggressively deploying the faster 5G spectrum that gave it a nice leap in 5G performance last year. Still, Verizon and AT&T are lagging quite a bit in overall mobile network performance, and AT&T has fallen even farther behind when it comes to delivering the best 5G speeds across the nation.

Read more
T-Mobile subscribers can get MLS Season Pass for free
MLS Season Pass on an iPhone.

T-Mobile today announced that it's giving its subscribers MLS Season Pass for free. The service — which gets you every MLS game this season, along with other attached leagues — normally costs $100 for the season, or $15 a month.

T-Mobile subscribers (and Metro by T-Mobile customers) will be able to add MLS Season Pass via the T-Mobile Tuesdays app starting on February 21.

Read more