Friday, December 13, 2013

Sprint Looking to buy up T-Mobile

According to the Wall Street Journal’s sources, Sprint is looking in to the possibility of buying out T-Mobile. This would obviously create one larger carrier capable of competing with Verizon and AT&T.

According to WSJ, it’s the CEO of Japanese carrier, Softbank who’s wanting to drive the move. Of course, Softbank recently bought 80% of Sprint stock, placing the carrier under Softbank’s ownership. The Japanese firm has also purchased a $1.26 billion slice of Brightstar and grabbed a large chunk of Finnish game-maker, Supercell for $1.5 billion. Softbank are clearly not shy about spending money.

There are two big questions here. Firstly, with T-Mobile’s position in the market strengthening, is it really in its best interest to sell up? Secondly, as mentioned already, would the governing bodies allow the move?

T-Mobile no longer needs to sell. Its customer base has grown tremendously over the past 9 months and it’s raised $3 billion of its own cash through stock and debt sales in order to expand and acquire spectrum.