That’s right, the third and fourth largest telecommunications companies in the U.S. are talking of a merger that could possibly begin this summer.
Ever since delivering to a T-Mobile store in Charlotte, NC, we have been keeping up with the company’s news. So far, this preliminary deal is for $32 billion and lists that Sprint would acquire T-Mobile for $40 a share in cash and stock.
According to the NY Times, the two companies have been considering a merger for quite some time. It appears that combining is their best chance at beating out major competitors like Verizon and AT&T. In the cable competition, Comcast and Time Warner Cable have come to a deal that will blow other cable providers out of the water, and these deals will also offer landline and internet services.
Just last year, T-Mobile successfully acquired MetroPCS. This is likely what gave the company the confidence to finally go ahead with the Sprint merger. Still, it’s not clear if even the merged company will have the finances to compete with Verizon and AT&T over a long period.
What do you think about this merger? We’d like to know!