Softbank's Masayoshi Son May Have Blundered With Sprint

Laverne Mann
November 1, 2017

In a research note, Philip Cusick, an analyst at JP Morgan said; "With no merger of Sprint and T-Mobile, as well as the entrance of Comcast and Charter into wireless, we expect Verizon to have a hard run going forward".

The Nikkei Asian Review kicked off by reporting from Japan that Sprint's owner, Japan's SoftBank, plans to break off deal negotiations with T-Mobile's parent company, Germany's Deutsche Telekom, over disagreements about who would control the combined company.

As reported by Nikkei, citing a source familiar with the situation, Deutsche Telekom - which owns a 66 per cent majority of T-Mobile US - had insisted on owning a controlling stake in the merged company.

The companies had been ironing out final terms of the merger in the hopes of announcing a deal mid to late this month, people familiar with the matter told Bloomberg last month.

Several SoftBank directors raised strategic concerns in the Friday meeting about not owning or controlling a wireless network in the US, though it wasn't clear whether the board had chose to call off the talks, a person familiar with the matter told Bloomberg News on Monday.

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Shares in the provider of satellite television Dish Network Corp that had hugely been considered an active partner for the Sprint or T-mobile of its spectrum holdings, shut down at 4 percent. Sprint, T-Mobile and SoftBank representatives didn't immediately reply to requests for comment.

When talks broke off in 2014 the two sides assumed antitrust regulators wouldn't allow a tie-up.

Deutsche Telekom and T-Mobile declined to comment.

This actually isn't the first time that a merger between the two carries has failed.

The companies had been hoping their chances would improve under the more business-friendly administration of US President Donald Trump. Many saw the merger as the best move for Sprint, which has been struggling in a competitive wireless market.

Other reports by MaliBehiribAe

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