The merger between wireless companies # 3 and # 4, T-Mobile and Sprint, could be in danger of falling through.
According to the Wall Street Journal, not named sources cite, lawyers for the Justice Department told the companies that their merger of $ 26 billion was unlikely. Dollars would be approved.
Verizon is the No. 1 wireless carrier with a market share of 34.4%, followed by AT&T at 33%, 17.9% for T-Mobile and 13.5% for Sprint, according to a recent survey. from Georgetown University.
The final word on a merger rests on the agency's management, not staff, so Sprint and T-Mobile could see their overall company happen, but an employee's recommendation against it is not a positive sign.
Since we are in a late cycle market, it makes sense to seek value and for some security, and the analysts at Oppenheimer may be in the sector that has both. (Photo: Tony Webster / Wikimedia Commons)
T-Mobile and Sprint had previously tried to merge, but the deal fell apart. T-Mobile also saw AT & T, but the Obama administration blocked it.
On Twitter, T-Mobile CEO John Legere rejected the Wall Street Journal report as speculation and called "the premise …. simply untrue" and said the company would have no further comments.
By publishing the agreement to hit Together, T-Mobile and Sprint said the move would make businesses more competitive and enable them to invest in the next generation of technologies, super-fast 5G service.
In an application to the Federal Communications Commission this week, Sprint said it was very necessary that the merger remained competitive.
"Sprint is in a very difficult situation that only gets worse. Sprint's network lacks coverage and consistency that customers demand …. Sprint loses customers – reducing revenue and cash flow – further limiting its ability to invest in its Network and service its debt. Simply put, Sprint is not on a sustainable competitive path. "
We reached Sprint for comment but did not return.
Follow Jefferson Graham on Twitter: @jeffersongraham
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