Science

With T-Mobile Deal All But Dead, Softbank Looks To Charter

With T-Mobile Deal All But Dead, Softbank Looks To Charter

Shares of Sprint and T-Mobile tumbled Monday after rumors emerged that merger talks between the two companies were fizzling. The tone of the release suggests T-Mobile and Sprint are still on pleasant enough terms, so it's not unthinkable to imagine the two to partnering in some capacity in the future.

"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination". To shore up cash over the past two years, the company has already mortgaged a portion of its airwaves and equipment through sale leaseback deals.

It comes as Sprint has somewhat struggled in an increasingly competitive USA mobile market. T-Mobile CEO John Legere reportedly spoke with his oft-rival, Sprint CEO Marcelo Claure, this week to make clear T-Mobile's commitment to keep negotiations alive.

Mark Stodden, telecom analyst at Moody's, said "To really take the kind of next step from a business that has been stabilized to a business that has been growing is going to require a new more intense investment phase".

Mark Zuckerberg Promises Radical Ad Transparency as Facebook Profit Rockets
Overseas growth in monthly active users - a key metric for Facebook - also looks promising to many analysts. He went on to stress that protecting Facebook's community was "more important" than boosting profit.

The long-sought merger reportedly fell apart because SoftBank was unhappy with the latest terms, which would have given Deutsche Telekom majority ownership of both carriers. Initially, the merger seemed to be a done deal.

Bloomberg has reported that SoftBank CEO and Sprint chairman Masayoshi Son is still waiting on further talks with Deutsche Telekom to try and salvage the deal, but a New York Post story claims he is also holding high level talks with executives at Charter.

This isn't the first time Sprint has tried to acquire T-Mobile, and it may not be the last. But President Donald Trump has also made populist comments on antitrust and prioritized job creation as a key platform.