Reports coming from reliable resources that the Japanese company, SoftBank is interested to give away the control of its major staking company Sprint to T-mobile parent company Deustsche Telekom.
According to the reports claims that the merger is over the frustrated Sprint’s growth in the U.S.
In 2013, the scenario was just opposite. Sprint wanted to buy T-mobile in a deal said to be worth more than $20 billion. But abandoned it plans in 2014 over regulatory scrutiny.
Under the new Trump administration, rumors revived with T-mobile CEO John Legere most recent saying that a merger would be potential outcome at this past CES.
Sprint and T-Mobile will likely face the same regulatory scrutiny if a potential purchase deal is reached between the two.
Investors have said a merger between T-Mobile and Sprint, ranked third and fourth respectively, would still face antitrust challenges, but made strategic sense as the industry moves to fifth-generation wireless technology. Carriers will need to spend billions of dollars to upgrade to 5G networks that promise to be 10 times to 100 times faster than current speeds.
While SoftBank is still open to discussing other options, it is now willing to surrender control of Sprint and retain a minority stake in a merger with T-Mobile, the sources said. They asked not to be identified because the deliberations are confidential.