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.

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  • 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.

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