Wall Street Journal Reports Sprint to pay $50 billion for T-Mobile

[mike123abc]

http://online.wsj.com/articles/spri...er-terms-1401919219?mod=WSJ_hp_LEFTTopStories

Yes probably a pay article.

Sprint Corp. and T-Mobile US Inc. have agreed on the broad terms of a merger worth around $50 billion and are working toward a final agreement, people familiar with the matter said.

Under the framework, Sprint would acquire T-Mobile for around $40 a share in a deal that could happen early this summer, the people said.

The WSJ is reporting there would be a 1 billion dollar break up fee.

What are the odds of this being approved? T-Mobile has been on a tear lately building business and improving their image. Since the buyout of Sprint last year, it does not seem like Sprint has done anything new except to try to buy T-Mobile.

 

[mike123abc]

http://www.businessinsider.com/john-legere-2014-6

Was the CEO of T-Mobile hired to just pump up T-Mobile for a sale? He did a great job generating customers. He got rid of a lot of annoyances plaguing cell phone customers:

It's that kind of boasting and showmanship that has helped turn T-Mobile into a branding story just as much as it is the story of a company coming back from the brink of collapse. Whether Legere's gratuitous swearing, toying with the press, and public shaming of his competitors is a gimmick or not is almost irrelevant. The company has the spotlight now, the allure of a scrappy startup trying to disrupt two giants that have done nothing but annoy their customers with confusing contracts, overage charges, and painful device upgrade cycles.

Since Legere took over in late 2012, his plan has been to pick apart those annoyances one at a time in what the company calls its "uncarrier" moves. Contracts? Gone. Want a new phone? Upgrade whenever you want, as long as you've paid off your first device. Tired of getting a massive bill every time you travel overseas? Free 2G data and texting should help.

 

[mike123abc]

Analysts suggest that the new company would have to drop Sprint pricing down to T-Mobile pricing levels.

http://www.fiercewireless.com/story...head-carrier-would-need-cut-prices/2014-06-10

Sprint's postpaid average revenue per user was $63.52 in the first quarter, compared with $50.01 for T-Mobile. However, that disparity reflects the fact that the vast majority of T-Mobile customers are on no-contract Simple Choice plans without device subsidies, which have lower ARPUs and shift revenue from service revenue to equipment revenue. T-Mobile said that 75 percent of its branded postpaid customers were on its Value or Simple Choice plans at the end of the first quarter, up from 69 percent at the end of the fourth quarter of 2013. T-Mobile expects between 85 and 90 percent of its branded postpaid customers to be on the plans by the end of 2014.

The article also goes on to suggest that the Sprint name be dropped in favor of T-Mobile since it is the hot brand right now.

 

[TheKrell]

Fooey. I think they should return to the Voicestream brand.

 

[mike123abc]

Fooey. I think they should return to the Voicestream brand.

No, Nextel shall rise from the ashes...

 

[Stargazer]

Sprint-Mobile.

Wasn't Sprint bought for around 50 billion? Isn't Sprint more valuable than T-Mobile?

 

[mike123abc]

Sprint-Mobile.

Wasn't Sprint bought for around 50 billion? Isn't Sprint more valuable than T-Mobile?

Sprint has more customers but right now T-Mobile has a better brand perception. T-Mobile is adding customers, Sprint is losing them.