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As T-Mobile has its best quarter ever, Sprint buyout rumors resurface

News by Andrew Kameka on Thursday May 01, 2014.

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T-Mobile US today announced that it had a record quarter, adding a net 2.5 million new customers in the first quarter of 2014. The nation's fourth-place carrier credits its "Un-carrier" programs as the reason it captured "nearly all" of the consumer growth in the wireless industry and the highest total of new customers it has ever received. The additions were more than combined totals of leading carriers AT&T and Verizon. The momentum gained from cutting prices, international texting and calling charges, and overage fees has helped T-Mobile attract new attention.

Strong customer gains has also attracted renewed interest in a Sprint/T-Mobile merger. The rumor that won't die is once again starting thanks to a Bloomberg report citing sources who say Sprint has met with banks to secure financing necessary to bid to purchase T-Mobile. The bid is to be submitted in July so Sprint has more time to convince the Department of Justice not to oppose its acquisition, according to Bloomberg. T-Mobile is current worth $23.5 billion but it would take more money than that to convince parent company Deutsche Telekom to sell, and the deal would also have to include taking on T-Mobile's $8.7 billion in debt.

If the deal were to be accepted and approved by US regulators, current T-Mobile CEO John Legere would be the leading candidate to run the Sprint and T-Mobile. Given the contrast of the two companies' performance in recent quarters, that shouldn't surprise anyone.

source: T-Mobile

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Andrew Kameka
Andrew is based in Miami, Florida.

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