T-Mobile and Sprint have said they have ceased discussions to merge into a single entity since they could not find mutually agreeable terms. Both the companies have been open to idea of merging for the past few years. Back in September there were reports of talks of merger, later in October new reports said that the companies might announce a merger by the end of the month, but Sprint eventually pulled out due to ownership concerns.
Now it appears the two companies weren’t able to find a deal that worked for both organizations.
Regrading this, John Legere, President and CEO of T-Mobile US, Inc. said:
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.
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.