T-Mobile Dish Out Sprint
T-Mobile and Sprint could be a power couple in mobile telecommunications, both companies standing ready to go with their merger deal in hand. However, with Dish left feeling like a third wheel, the US government may step in.
Oligopoly is the word. The US internet and cell service industry has a handful of actors, all jockeying over customers. The cellular space is now transforming in front of our very eyes, with T-Mobile and Sprint on the precipice of a groundbreaking merger. AT&T, Verizon, and Dish, who’d be going up against the new powerhouse, all watch on. Investors stand ready to back the merging monster, realistically leaving Dish out of the picture, and turning it from an industry of 5 to an industry of 3.Â
Some call that capitalism. The Department of Justice call it unfair. To curb its new command over cell service, T-Mobile has agreed to a deal with Dish, handing over some of Sprint’s business to help the chaser compete against it. Funny world we live in, but this does leave all parties happy. For this to officially send, it’s all up to the US government to lick the stamp.
Investors are watching this like hawks. Dish could come out with gains as it takes on a divested wireless spectrum from T-Mobile. Sprint is T-Mobile’s target acquisition, a final deal probably closing at a premium to the current stock price, meaning investors win big. And, of course, T-Mobile itself, which is seen by investors as in the balance. It’s a lot of money to buy yourself a Sprint, and the elaborate deal isn’t over the finishing line yet. With the Department of Justice involved, we could be in for some last minute drama!