T-Mobile Will Not Be Merging With Sprint

Bellevue-based T-Mobile and Kansas-based Sprint will not be merging, after all.
 
 

The much-discussed potential merger between T-Mobile and Sprint has officially been called off.

Bellevue-based T-Mobile issued a statement on Saturday saying “the companies were unable to find mutually agreeable terms.

Shares for both companies are down significantly this morning, with Kansas-based Sprint opening down more than 13 percent, and T-Mobile opening down five percent.

After reporting its third quarter earnings, T-Mobile executives did not have the typical call with investors where questions about the potential merger surely would’ve been asked. Instead, president and CEO John Legere released a YouTube video to discuss the company’s results.

In Saturday’s statements, Legere said:

“The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders. However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile’s shareholders compared to our outstanding stand-alone performance and track record. Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories – ultimately redefining the mobile Internet as we know it. We’ve been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless. We won’t stop now.”

And Sprint President and CEO and SoftBank Board member Marcelo Claure said:

“While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth.  As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries. We are determined to continue our efforts to change the wireless industry and compete fiercely. We look forward to continuing to take the fight to the duopoly and newly emerging competitors."

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