T-Mobile-Sprint Merger Reportedly In Trouble

By Paul Riegler on 16 April 2019
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A T-Mobile store in Brooklyn

A T-Mobile store in Brooklyn

The planned merger of the No. 3 and No. 4 mobile operators in the United States, T-Mobile and Sprint, is in danger of being rejected by regulators.

Lawyers in the Justice Department reportedly told the two telecom companies that it was unlikely that their $26 billion merger would be approved.

The news was first reported in the Wall Street Journal.

The two carriers announced plans to merge in April 2018.

T-Mobile and Sprint have repeatedly tried to merge in recent years, without success. A planned merger in 2014 was unable to be consummated following regulatory challenges from the Obaba administration.

The merged entity would keep the T-Mobile name and have nearly 100 million subscribers.

The Journal said that Justice Department antitrust officials are concerned about the impact the merger of the two companies would have on competition in the wireless industry.

T-Mobile’s CEO, John Legere, responded swiftly to the report, saying that the “premise of this story” was “simply untrue.”

“Out of respect for the process, we have no further comment,” Legere added.

(Photo: Accura Media Group)

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