Sprint and T-Mobile call off merger after months of talks

Sprint and T-Mobile call off merger after months of talks

Sprint Corp (N:) and T-Mobile USA Inc (O:) have ended merger negotiations, the companies said in a joint statement on Saturday.

Earlier this week, sources claimed SoftBank's board had made a decision to call off the Sprint-T-mobile merger, the reason being an inability to work out ownership terms with T-Mobile's Deutsche Telekom.

This isn't the first time Sprint has tried to acquire T-Mobile, and it may not be the last. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. However, we have agreed that it is best to move forward on our own.

With merger talk officially through, that means T-Mobile and Sprint will have to revisit their position in a marketplace where Verizon and AT&T dwarf their wireless subscriber totals.

Sprint has a lot of debt and has posted a string of annual losses. Sprint's parent SoftBank almost acquired T-Mobile in 2014 but the deal fell through after US regulators expressed concerns. With the new Trump administration, it was thought regulators might be more relaxed.

With growth opportunity in the United States remaining extremely slim for wireless carriers due to large-sized players and the highly mature nature of the market, Sprint will have to find a way to start growing its subscription count. Both companies may have to sort that out sooner rather than later.

But no deal was announced immediately following the conclusion of a ban on merger talks in the spring that was associated with a US government auction of wireless airwaves.

It's possible that the two sides will come to an agreement within weeks, claims today's report.

Industry executives have said a combined Sprint-T-Mobile entity would have the scale, network and enhanced portfolio of wireless airwaves and a better chance to develop 5G, the next generation of wireless technology. It seemed this most recent deal was doomed to failure, as well.

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