Sprint and T-Mobile are reportedly close to a deal that would see them merge into a single wireless carrier.
Different sources value the deal at either $32 billion or $50 billion. Most sources cite a price of $40 per share, which lends credence to the $32 billion figure if T-Mobile’s 802.93 million outstanding shares are purchased. As of this writing, T-Mobile shares are trading at $34.50.
A combined Sprint and T-Mobile would have approximately the same number of subscribers as each of its main rivals, Verizon Wireless and AT&T.
Sprint and T-Mobile are the third and fourth largest wireless carriers in the United States, respectively. T-Mobile’s CEO said the company was “approaching 50 million customers” as part of its first quarter 2014 earnings announcement. Sprint ended 2014 with 53.9 million subscribers.
Both Sprint and T-Mobile have faced technological challenges in the recent past, combining wireless networks and transitioning customers. A merger would compound those challenges, because they operate differing types of mobile communication technologies.
A deal would likely be announced in July, but would still have to pass the muster of antitrust regulators.
Which wireless carrier do you use? Does size matter to you?