After weeks and weeks of speculation from heated reports that flew in like hawks, T-Mobile and Sprint have both announced they’re no longer in talks regarding a possible merger. The identical reason the two carriers say they aren’t merging is that “the companies were unable to find mutually agreeable terms.” The carriers’ CEOs released statements on the subject which you can read in full below.
“The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders. However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile’s shareholders compared to our outstanding stand-alone performance and track record,” said John Legere, President and CEO of T-Mobile US, Inc. “Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories – ultimately redefining the mobile Internet as we know it. We’ve been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless. We won’t stop now.”
Sprint President and CEO and SoftBank Board member Marcelo Claure said: “While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth. As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries. We are determined to continue our efforts to change the wireless industry and compete fiercely. We look forward to continuing to take the fight to the duopoly and newly emerging competitors.”
If Sprint and T-Mobile were to announce a merger, it would, of course, need to pass through regulators and officials before the bottom two major US carriers could become one. If that went through, it would’ve disrupted the entire industry and create an even playing field for both Verizon and AT&T to stomp on. Unfortunately, it looks like this won’t be happening.
However, nowhere in either statement was there a mention that a merge will never take place. Therefore, the carriers could spark up the conversation once more if circumstances change. In the meantime, for those of you subscribed to either carrier, enjoy your service because it’s gonna stay like that for a little while.
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