Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Mobile Tech
Real-time info services with Neustar
Average Rating:
Rate this article:  
Sprint May Not Fight for T-Mobile Acquisition
Sprint May Not Fight for T-Mobile Acquisition

By Jennifer LeClaire
February 10, 2014 10:18AM

    Bookmark and Share
While from the Sprint and T-Mobile perspective the deal sounds like it makes sense, from a regulatory perspective I see a lot of pushback. Regulators in the U.S. have already said no to the T-Mobile and AT&T deal a few years ago. So as things stand right now I don't see T-Mobile and Sprint getting together, said analyst Jeff Kagan.
 



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:





 Mobile Tech
1.   T-Mobile Calls 'BS' on AT&T Promo
2.   Win Phone 8.1 Update Already on Way
3.   Researchers Tout Battery Breakthrough
4.   Samsung Postpones Tizen Phone
5.   Verizon Throttling Data Speeds


advertisement
T-Mobile Calls 'BS' on AT&T Promo
Says 'Best Ever Pricing' is a joke.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Is the Amazon Fire Phone a Winner?
It coulda been a contender -- but isn't.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
 
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
 
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 

Mobile Technology Spotlight
T-Mobile Calls 'BS' on AT&T's New Promotion
While Verizon Wireless is moving to throttle bandwidth hogs, a scrappy T-Mobile is taking on the giants with a limited-time promotion it hopes will drive up the churn rates of its wireless rivals.
 
Microsoft Update to Windows Phone 8.1 Already Coming
An update to Windows Phone 8.1 is on the way just weeks after the release of the product itself. Microsoft has begun detailing some of the update features to phone manufacturers.
 
Stanford Researchers Report Battery Breakthrough
Stanford researchers have found a way to use lithium in a battery's anode, a breakthrough that could triple capacity and has been described as the "holy grail of battery science."
 

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.