Softbank Reportedly in Final Talks to Acquire T-Mobile USA

The saga of T-Mobile continues. SoftBank, the majority holder in Sprint, is being reported to be in the final talks stage to pick up T-Mobile USA from parent company Deutsche Telekom.  They are said to be aiming at concluding the deal to the tune of $19 billion and having Sprint buy the majority of T-Mobile shares. The original talks were aimed at a stock swap but now we are hearing that SoftBank is talking to various banks to borrow the funds to make a cash offer instead. Primarily because DT prefers a cash deal so the story goes.

A merger with Sprint is nothing new. It has been talked about and rumored for years. The combined efforts of Sprint and T-Mobile would certainly give them a bigger play at Verizon and AT&T, but I often wonder at what cost. It isn’t surprising that DT wants cold hard cash. They laid down some pretty great fallout plans when AT&T tried to buy T-Mobile USA. I have no doubt in my mind that they are preparing the same sort of fallback win if the powers that be decide to not approve the purchase.

In the end, it is all about money and how they plan to execute the purchase. DT is prepared to sell if they get a good offer. If things go smoothly we should start to hear about the changes and what is ultimately going to happen some time in the spring of 2014. Let’s not forget that Dish Network is in the mix as well. They have been considering picking up T-Mobile as well and could attempt to edge out Softbank in the end. It is going to be an exciting first half of the year for T-Mobile regardless of who bids or if/when they are acquired. We know John Legere has some pig plans coming at CES with the 4th step of the Uncarriers plans.

Source: Reuters/Bloomberg

Via: AndroidHeadlines