Will Sprint Corporation Take a Shot at Buying T-Mobile?

There's been much talk lately of an acquisition of T-Mobile by Sprint, but regulators have said such a move would come under very heavy scrutiny. Should Sprint even attempt this?

Feb 10, 2014 at 7:00PM

There has been a lot of buzz lately about the idea that Sprint (NYSE:S) may be looking into acquiring smaller rival T-Mobile (NASDAQ:TMUS). Regulators, however, have been buzzing on the topic themselves, with a lot of very vocal opposition to the deal. While not naming this deal explicitly, the Justice Department stated last month that any proposed transaction that would consolidate the four big carriers into three would get "a very hard look."

In this video from Monday's edition of Tech Teardown, Motley Fool tech and telecom bureau chief Evan Niu and host Erin Kennedy discuss the possible acquisition, and whether Sprint should go forward with attempting the costly deal, despite the poor odds of its being permitted. Sprint argues that AT&T (NYSE:T) and Verizon (NYSE:VZ), the two biggest current players, are currently enjoying the lion's share of the operating profits in domestic wireless, and that the extra scale it would get from an acquisition of T-Mobile would effectively add a third large player, rather than remove a fourth. Evan is doubtful, however, that the regulators are going to see things that way.

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Erin Kennedy and The Motley Fool have no position in any of the stocks mentioned. Evan Niu, CFA owns shares of Verizon Communications. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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