DOJ says T-Mobile and Sprint merger ‘unlikely’ to be approved


X Scalper

We’ve been talking about the T-Mobile and Sprint merger for a while now, and about a year since it was initially announced, it looks like it could be in trouble. According to The Wall Street Journal, the Department of Justice isn’t so keen on the impending merger.

The report reads:

Justice Department staffers have told T-Mobile US Inc. and Sprint Corp. that their planned merger is unlikely to be approved as currently structured, according to people familiar with the matter, casting doubt on the fate of the $26 billion deal.

Why? Apparently, the DOJ’s antitrust division is concerned about the impact merging the United States’ third and fourth largest wireless carriers would have on competition.

This has been a big area of concern surrounding the T-Mobile and Sprint deal ever since it was unveiled on April 29, 2018. The two carriers have reassured us that the merger will actually be better for competition, but with it essentially bringing the number of big carriers from four down to three, it makes sense as to why some people aren’t buying into that.

In a meeting earlier this month, Justice Department staff members laid out their concerns with the all-stock deal and questioned the companies’ arguments that the combination would produce important efficiencies for the merged firm, the people said.

It’s said that T-Mobile could still turn things around by offering assets sales to alleviate the DOJ’s concerns, but it’s currently unclear what the next steps are. As we learn more, we’ll be sure to update you accordingly.

T-Mobile and Sprint Merger FAQ: The good, the bad, and the ugly




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