Back in September, a report outlined T-Mobile and Sprint may have finally jumped a few final hurdles to get closer to an actual merger.
Now, Bloomberg reports that the conversations are in the final stages, and that a merger announcement could be made before the end of this month. The publication cites conversations made with unnamed sources, people familiar with the matter, and say that Sprint and T-Mobile are currently determining the exchange ratio. This will determine Sprint’s valuation in the process.
This is effectively one of the final steps the companies have to go through before a merger can be announced.
“Both sides are conducting final due diligence to decide on the exchange ratio that will determine Sprint's valuation, said the people, who asked not to be identified because the discussions are private. Setting an exchange ratio for the all-stock deal will be one of the last steps to clinching the merger and hasn't yet been finalized, the people said.”
As it stands right now, there is no word on when a merger might happen. The expectation at this point is that both companies will be announcing the merger before the end of October, along with quarterly earnings for both companies. After that announcement, the proposal would need to be approved by federal regulators before the merger could actually happen.
It is also likely that T-Mobile will effectively become the dominate company between the two after the merger, but what will actually happen, with network names, customer transfers, and more, remains unknown.
If the merger does happen, it means that the big wireless carriers will get reduced from four to three, with Verizon, AT&T, and T-Mobile left.
What do you think of a merger between T-Mobile and Sprint?