Justice Department Skeptical About Sprint Acquisition of T-Mobile

Tuesday January 28, 2014 4:01 PM PST by Jordan Golson
sprinttmobileBack in December, it was reported that Sprint -- the U.S.'s third-largest cell carrier -- was preparing a bid to acquire T-Mobile, the country's fourth-largest carrier. The deal, depending on the stake Sprint attempts to buy, could be worth more than $20 billion.

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 said
According 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.

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Posted: 11 months ago
Sprint has shown time and time again how incompetent they are. T-Mobile is actually doing well and growing at an extremely fast rate. Would hate to see Sprint get ahold of T-Mobile.

AT&T and Sprint would not be doing some of the things they are doing right now if it were not for T-Mobile's Uncarrier. Verizon will probably follow up soon with something.
Rating: 13 Votes
Posted: 11 months ago
4 companies are better than three. And I'd hate to see Sprint get T-Mobile.
Rating: 10 Votes
Posted: 11 months ago
So Sprint cried like a baby when AT&T was to accuire T-Mo, and now they want to accuire T-Mo themselves?

Also, how many incompatible technolgies can Sprint take?

First they accuired Nextell which cost them billions of dollars in loses, then they accuire ClearWire (again, after letting go of it) and they kill it and will be phasing out its WiMax, and now a GSM carrier? Are you kidding me?
Rating: 7 Votes
Posted: 11 months ago

I hope a deal can be reached! :D


You like high priced wireless service?
Rating: 6 Votes
Posted: 11 months ago
We need as many as companies as possible. All these acquisitions of bigger companies eating up these little companies isn't leaveing much of a choice for consumers.

This country doesn't need a single Monoply for wireless service.
Rating: 4 Votes
Posted: 11 months ago
The justice dept doesn't like this merger but they let the AA/US Air one go through. hello higher airline tickets!
Rating: 3 Votes
Posted: 11 months ago

Also, how many incompatible technolgies can Sprint take?

First they accuired Nextell which cost them billions of dollars in loses, then they accuire ClearWire (again, after letting go of it) and they kill it and will be phasing out its WiMax, and now a GSM carrier? Are you kidding me?


That's Sprint for you.
Rating: 2 Votes
Posted: 11 months ago
Good. This is exactly why regulation is a good thing because it create competition.

The more companies there are in the market, the better for us consumers.
Rating: 2 Votes
Posted: 11 months ago
To imply that "Sprint plans to acquire T-Mobile" is misleading at best.

In reality, it is the gigantic Japanese mega-corporation Softbank (which also owns much of Sprint) that wishes to acquire T-Mobile USA.

By implying the former, Softbank is trying to make this look like an "innocent merger" between 2 small fry carriers, and they are hoping that this is how the US Courts perceive this acquisition.
Rating: 2 Votes
Posted: 11 months ago
Even more so than just there being 4 carrieres, the fact that T-Mobile is being a bit of a maverick in actually getting these companies to compete should be a hurdle. If T-Mobile got gobbled up, I'd be afraid of all of the uncarrier stuff going away.
Rating: 2 Votes

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