With Sprint continuing to shed subscribers and its brand losing more and more steam with each passing quarter, it looks like owner SoftBank will take advantage of T-Mobile’s momentum in the event that the companies’ much-rumored merger is approved by regulators.
According to a recent report from CNBC, Sprint will finally announce its intention to acquire T-Mobile sometime in July or August. The companies have apparently agreed on a massive $2 billion break-up fee that will be paid to T-Mobile if the deal doesn’t go through, and Deutsche Telekom will retain some ownership of the merged company if the deal is approved.
Interestingly, CNBC reports that the merged entity will lose the “Sprint” brand and instead use the T-Mobile name moving forward. The move would be quite atypical considering Sprint is acquiring T-Mobile, but there is no question that the Sprint brand is suffering right now while T-Mobile is thriving.
“Something I’ve talked about so many times and something we’re fairly certain of is going to come to pass which is if, in fact, this deal does get announced, the plan is that T-Mobile would be the brand they go with,” David Faber reported. “And John Ledger’s management team would be in charge.”
According to earlier reports, the deal will be worth around $32 billion.