Sprint, T-Mobile merger could live
SoftBank Chairman Masayoshi Son’s remarks last week that he wants to restart merger talks between his Sprint and T-Mobile sent shares of the wireless carriers surging, as investors bet a deal may finally happen under the Trump administration’s looser regulatory climate.
Son, who became one of the world’s wealthiest men by turning Tokyo-based SoftBank into a telecommunications and technology powerhouse, sees a merger with TMobile as critical to creating a more robust competitor in the wireless business led by Verizon and AT&T.
The billionaire considered buying T-Mobile before, but abandoned the effort when officials at the Federal Communications Commission and Justice Department signaled they would oppose such a deal.
Now, with President Trump in the White House, almost everything is on the table for cable, telecommunications and media CEOs.
“Basically anything is possible. But I think the No. 1 favorite, the quickest route to synergy, is the option that we pursued from the start — T-Mobile,” Son told reporters in Tokyo late last week. “However, it’s also up to the other side and whatever conditions they may have. Therefore, if there are other opportunities for industry consolidation that offer better conditions, of course we want to consider them with an open mind.”
Representatives for Sprint didn’t respond to messages seeking comment. T-Mobile declined to comment.
SoftBank owns more than 80 percent of Sprint after acquiring the majority stake in 2013, part of Son’s famed plan to build a business empire that can endure through the centuries.
Sprint is showing some signs of recent success, but the company is mired in debt and hasn’t turned a profit in about a decade. T-Mobile, meanwhile, is the fastest-growing wireless carrier in the US, using promotions, price cuts and social-media marketing to lure customers from Verizon and AT&T.