News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED
Let an ISACA® certification elevate your career.
Register today and save
You are here: Home / Mobile Tech / Sprint May Not Fight for T-Mobile
Next Generation Data Center Is Here!
Sprint May Not Fight for T-Mobile Acquisition
Sprint May Not Fight for T-Mobile Acquisition
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
FEBRUARY
10
2014



For all the talk about Sprint acquiring T-Mobile to challenge wireless industry behemoths Verizon and AT&T, the nation’s third-largest carrier may not be up to the regulatory fight.

According to a report in the Wall Street Journal, Sprint execs are huddling, trying to make a decision whether or not to move forward with a T-Mobile grab. The regrouping comes in the wake of antitrust officials expressing their displeasure at the prospects of the third- and four-largest wireless carriers further consolidating the industry by joining forces.

“Sprint Chairman Masayoshi Son and Chief Executive Dan Hesse, who met with officials at the Justice Department and the Federal Communications Commission in Washington in recent weeks, always knew a deal would be a tough sell, the people said. But the men were surprised by the level of opposition and its very public nature, one of the people said,” the Journal reported.

Not So Bold?

In December, rumors started circulating that Softbank, which recently acquired Sprint, is ready to make another bold move in the U.S. wireless industry and T-Mobile is smack dab in the center of the mix. Sprint was rumored to be considering grabbing the company, which would give the combined firm 98 million subscribers -- just 10 million fewer than AT&T and 3 million fewer than Verizon.

Almost immediately, news reports started circulating that at least six banks were working up proposals to finance a Sprint buyout of T-Mobile. Indeed, the Journal cited “people familiar with the matter” and pointed to the financing talks as another sign that the company is preparing to announce an official offer.

According to the Journal’s sources, the deal could be worth more than $20 billion and Sprint may make the bid in January. The paper reports T-Mobile has a current market valuation of $21.8 billion. If the carriers merge, the combined value of the resulting company would be about $57 million.

Anything Can Happen

We turned to Jeff Kagan, an independent industry analyst who initially suggested that Sprint would face major regulatory hurdles, to get his take on the latest twist. He told us the problem he’s been concerned about all along is manifesting.

“While from Sprint and T-Mobile perspective the deal sounds like it makes sense, from a regulatory perspective I see a lot of pushback,” Kagan said. “Regulators in the U.S. have already said no to the T-Mobile [and] AT&T deal a few years ago. They said that they wanted to see the four competitors in the marketplace competing.”

With Sprint and T-Mobile number three and number four, Kagan said, the threat might not be as great but it's a real threat, nonetheless. While he still thinks that Sprint and T-Mobile will be in the acquisition market going forward, he doesn't see them getting together because the path will be too difficult.

“Of course, anything can happen,” he said, “and conditions can be placed and agreed to, but as things stand right now I don't see T-Mobile and Sprint getting together.

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
IT departments are embracing cloud backup, but there's a lot you need to know before choosing a service provider. Learn all the critical things you need to know by accessing the white paper, "5 Things You Didn't Know About Cloud Backup". Access the White Paper now.
MORE IN MOBILE TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Known for its hot fries and soft-serve ice cream, Dairy Queen just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

Mobile Technology Spotlight
iWatch Watch: What Will Apple Ask Us To Wear?
There are still more questions than answers when it comes to details about the smart watch Apple seems poised to debut on Sept. 9. In fact, nobody seems completely sure that it will be a smart watch at all.
 
Google Successfully Tests Its Own Delivery Drone
While top technology companies are engaged in an "arms race" to develop drones that can quickly deliver goods to anyone anywhere, Google has revealed it successfully tested its own version.
 
Will iPhone Finally Catch Up with NFC Mobile Payment Ability?
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.