Can Sprint and T-Mobile Create The Next Telecom Powerhouse?

The saying "cash is king" has been a guiding principles for plenty of investors over the years, but after the wave of big ticket acquisitions we've seen roll through the telecom market of late, "consolidation" could very well become the big new C-word for telecom investors these days.

Perhaps the most high-profile of the several key deals unfolding in the sector at the moment is Sprint's (NYSE: S  ) attempts to pry away the resurgent T-Mobile (NYSE: TMUS  ) from its majority owner Deutsche Telekcom -- and telecom investors recently saw another round of new details emerge.

For better or worse
The determining factor in any possible tie-up between Sprint and T-Mobile has been the purportedly sky high regulatory hurdle the two sides will need to clear.

And, apparently undaunted by this not-so-small detail, Spring is still preparing to issue its official bid for T-Mobile at some point in either July or August. In terms of specifics, it appears Sprint hopes to pay Deutsche Telekom around $40 per share for T-Mobile, although Deutsche Telekom will likely retain a minority stake. In the video below, tech and telecom specialist Andrew Tonner breaks down these new details further.

1 little-known way to invest in tech's next trillion dollar market
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 11, 2014, at 11:14 AM, VegasSmitty wrote:

    An idiot must have written this article, Sprint and T-Mobile aren't even using the same frequencies!

  • Report this Comment On June 11, 2014, at 11:44 AM, blueboyblonde wrote:

    with extremely slow or non usable data service i can not see how they can remain in such high standing other than people sticking with them despite crap cellular service and higher prices than att&t and verizon.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2989538, ~/Articles/ArticleHandler.aspx, 9/2/2014 7:35:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 days ago Sponsored by:
DOW 17,098.45 18.88 0.11%
S&P 500 2,003.37 6.63 0.33%
NASD 4,580.27 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

6/18/2010 4:00 PM
DT.DL $11.83 Down +0.00 +0.00%
Deutsche Telekom A… CAPS Rating: ***
S $5.61 Down -0.05 -0.88%
Sprint CAPS Rating: **
TMUS $30.08 Up +0.24 +0.80%
T-Mobile US CAPS Rating: ***
T $34.96 Up +0.22 +0.63%
AT&T CAPS Rating: ***
VZ $49.82 Up +0.41 +0.83%
Verizon Communicat… CAPS Rating: ***