T-Mobile and Sprint Will Reportedly Drop Merger Deal Tomorrow

Photo via: TmoNews

T-Mobile and Sprint have been reported on and off for months about a potential deal that would see the two US carriers merge into one major carrier. Rumors stirred up last month as reports suggested the two carriers could announce the deal by the end of October, but here we are on October 30th and still nothing. And it looks like it’ll stay that way, according to reports out of Nikkei and The Wall Street Journal.

In the reports, it suggests SoftBank, Sprint’s parent company, is having difficulty agreeing on how the merged business would look after the deal closed. Specifically, it remained unclear as to which company would own the larger stake, whether it be SoftBank or T-Mobile’s parent, Deutsche Telekom. Ideally, it would be Deutsche Telekom since T-Mobile has many more subscribers and network coverage, but this theory isn’t mentioned by either reports’ source.

SoftBank is expected to approach Deutsche Telekom tomorrow to “propose ending the talks.” This is an interesting line since all the company’s doing is proposing to call off the deal. This means we could still see the merger take place at some point down the line. At least for now, however, don’t expect either company to make a surprise announcement on Halloween.