Justice Department Skeptical About Sprint Acquisition of T-Mobile
Recently, a pair of Sprint board members met with the U.S. Department of Justice to discuss a possible acquisition, reports The Wall Street Journal. The report says the DoJ has concerns over a potential deal.
The conversation, which occurred in January, signals the seriousness of Mr. Son's interest in a deal, but also underscores his highest hurdle. U.S. antitrust authorities believe the current lineup of four national carriers is important to maintaining a competitive market, and department officials indicated at the meeting that a deal combining Sprint and T-Mobile could face regulatory difficulties, the people saidAccording to the WSJ, Sprint has lined up roughly $31 billion in potential financing and the company is not deterred from pursuing an acquisition.
Japanese carrier Softbank purchased a 70 percent controlling interest in Sprint back in 2012 for roughly $20 billion. T-Mobile is majority owned by German telecom giant Deutsche Telekom.
Previously, AT&T attempted to acquire T-Mobile but government intervention prevented the deal from concluding. Since then, the companies have had a growing feud as they launch ever escalating marketing efforts in an attempt to poach each other's customers.