T-Mobile and Sprint are forming a $146 billion new company John Legere, T-Mobile's CEO, is expected to serve in that role for the merged entity, which would retain the T-Mobile name. It's official: T-Mobile and Sprint have announced plans to merge, with a combined company valued at $146 billion.John Legere, T-Mobile's CEO, is expected to serve in that role for the merged entity, which would retain the T-Mobile name. The deal is likely to draw scrutiny from antitrust regulators, considering the Trump administration's treatment of AT&T and Time Warner's attempted merger. The boards of T-Mobile and Sprint have put the finishing touches on a massive merger agreement that values a combined company at $146 billion. T-Mobile's CEO, John Legere, made the announcement on Sunday by Deutsche Telekom, which owns two-thirds of T-Mobile, would control the newly formed company. I’m excited to announce that @TMobile & @Sprint

have reached an agreement to come together to form a new company – a larger, stronger competitor that will be a force for positive change for all US consumers and businesses! Watch this & click through for details. — John Legere (@JohnLegere) April 29, 2018 Legere is expected to be the CEO of the combined entity, which would keep the T-Mobile name and have headquarters in Bellevue, Washington, and Overland Park, Kansas. The deal, which would combine the third- and fourth-largest US wireless carriers, is expected to come under serious scrutiny from antitrust regulators, as the Trump administration has The agreement marks the culmination of four years of on-again, off-again discussions between T-Mobile and Sprint; this is the third time the two rivals have tried to merge. With a combined 127 million customers, the two firms are expected to compete directly with "This isn't a case of going from four to three wireless companies — there are now at least seven or eight big competitors in this converging market," Legere said on Sunday. The agreement involves T-Mobile exchanging 9.75 Sprint shares per unit of T-Mobile. Deutsche Telekom would own 42% of the combined company, while SoftBank, which controls 85% of Sprint, would own 27%. The public would hold the remaining 31%. Sprint and T-Mobile discussed a deal in November, but talks broke down amid disagreement over who would control the new company. "This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience — and do it all so much faster than either company could on its own," Legere said in an Sprint's CEO, Marcelo Claure, added: "We intend to bring this same competitive disruption as we look to build the world's best 5G network that will make the US a hotbed for innovation and will redefine the way consumers live and work across the US, including in rural America." The all-stock transaction values Sprint at 0.10256 per T-Mobile share, or $6.62 a share, based on T-Mobile's latest closing price, for a total of about $26 billion. T-Mobile had a market value of $55 billion as of Friday's close, and the two companies have roughly $60 billion of combined debt. Sprint's stock has surged 26% since This article was originally published on [url= The agreement marks the culmination of four years of on-again, off-again discussions.The deal is likely to draw scrutiny from antitrust regulators, considering the Trump administration's treatment of AT&T and Time Warner's attempted merger. Sprint dropped by 13% in premarket trading on Monday, while T-Mobile slid 2.4%. Follow live trading on Markets Insider The boards of T-Mobile and Sprint have put the finishing touches on a massive merger agreement that values a combined company at $146 billion.T-Mobile's CEO, John Legere, made the announcement on Sunday by tweeting a seven-minute video breaking down the merger and linking to a website that further explains the combination.Deutsche Telekom, which owns two-thirds of T-Mobile, would control the newly formed company.Legere is expected to be the CEO of the combined entity, which would keep the T-Mobile name and have headquarters in Bellevue, Washington, and Overland Park, Kansas.The deal, which would combine the third- and fourth-largest US wireless carriers, is expected to come under serious scrutiny from antitrust regulators, as the Trump administration has fervently opposed AT&T's proposed mega-acquisition of Time Warner The agreement marks the culmination of four years of on-again, off-again discussions between T-Mobile and Sprint; this is the third time the two rivals have tried to merge.With a combined 127 million customers, the two firms are expected to compete directly with Verizon , the US's largest carrier, and AT&T "This isn't a case of going from four to three wireless companies — there are now at least seven or eight big competitors in this converging market," Legere said on Sunday.The agreement involves T-Mobile exchanging 9.75 Sprint shares per unit of T-Mobile. Deutsche Telekom would own 42% of the combined company, while SoftBank, which controls 85% of Sprint, would own 27%. The public would hold the remaining 31%.Sprint and T-Mobile discussed a deal in November, but talks broke down amid disagreement over who would control the new company. A Wall Street Journal report suggests that SoftBank's founder, Masayoshi Son, may have since become more willing to give up control amid mounting pressure on Sprint to roll out 5G technology."This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience — and do it all so much faster than either company could on its own," Legere said in an official statement Sprint's CEO, Marcelo Claure, added: "We intend to bring this same competitive disruption as we look to build the world's best 5G network that will make the US a hotbed for innovation and will redefine the way consumers live and work across the US, including in rural America."The all-stock transaction values Sprint at 0.10256 per T-Mobile share, or $6.62 a share, based on T-Mobile's latest closing price, for a total of about $26 billion.T-Mobile had a market value of $55 billion as of Friday's close, and the two companies have roughly $60 billion of combined debt.Sprint's stock has surged 26% since The Journal reported on April 10 that the two companies had rekindled merger talks, while T-Mobile's has risen 8% over the same period.This article was originally published on [url= LINK ]Business Insider. Copyright 2018. </s> The boards of T-Mobile and Sprint have put the finishing touches on a massive merger agreement that values the combined company at $146 billion.

T-Mobile USA chief executive officer John Legere made the announcement by tweeting a seven-minute video breaking down the merger, also including a link to a website further explaining the combination.

Legere will be CEO of the newly combined entity, will keep the T-Mobile name, and have headquarters located in both Bellevue, Wash. and Overland Park, Kan.

The all-stock deal values Sprint at 0.10256 per T-Mobile share, or $6.62 a share, based on T-Mobile's last closing price. That valued Sprint at around $26 billion.

This story is developing. Refresh for updates. </s> WASHINGTON — T-Mobile and Sprint finally agreed to a massive telecom merger after years of negotiations punctuated by two breakups.

The $26 billion merger, announced Sunday, values Sprint near its current share price of $6.50.

The tie-up would position the telecom companies as fiercer competitors to Verizon and AT&T, which have long dominated the US market.

“I’m excited to announce that @TMobile & @Sprint have reached an agreement to come together to form a new company — a larger, stronger competitor that will be a force for positive change for all US consumers and businesses! Watch this & click through for details.” said T-Mobile CEO John Legere, in a tweet Sunday.

A report that the deal was getting close drove up Sprint’s stock price by 8% on Friday and T-Mobile’s price edged up as well. The stock price for SoftBank, a Japanese conglomerate with a majority stake in Sprint, rose by 3%.

Sprint and T-Mobile first discussed a merger in 2014 but scrapped it because of concerns about regulatory challenges from the Obama administration.

The companies expected to have a better shot at the merger under the Trumpc administration.

Sprint stock tanks as T-Mobile merger said to collapse

SoftBank CEO Masayoshi Son met with Trump the month before he took office to talk up an investment in US businesses.

A few weeks later, T-Mobile’s Legere said he was open to “various forms of consolidation” when asked about a potential merger with Sprint and SoftBank under the Trump administration.

Related: T-Mobile and Sprint break up, again

But last November, after much speculation, the two companies issued a statement saying they “have ceased talks.”

“While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own,” Marcelo Claure, the Sprint CEO, said at the time.

Sprint and T-Mobile’s announcement is just the latest step in an ongoing movement towards telecom consolidation. AT&T is in talks to acquire Time Warner, which owns CNN and CNNMoney. The outcome of that $85 billion merger-in-the-making depends on a case in federal court, which is pending the decision of the judge. </s> NEW YORK (CNN) – T-Mobile and Sprint have finally agreed to a massive telecom merger after years of negotiations punctuated by two breakups.

The agreement would leave just three major wireless carriers in the United States and must clear antitrust regulators. The combined company, which will take on the name T-Mobile, would be positioned as a fierce competitor to Verizon and AT&T.

T-Mobile CEO John Legere, who will head the merged company, said on a conference call Sunday that the firm plans to deliver “the highest capacity network in US history.”

He said the company will hire thousands of people in a bid to create a nationwide network that will position the United States as the leader in providing 5G connectivity.

A recent report from research firm Analysys Mason suggests it’s China and South Korea, not the United States, that are currently leading 5G development.

The move combines the third and fourth largest wireless service providers in the nation. Sprint was valued at $26 billion based on its last closing price, and T-Mobile was last valued at $55 billion. The deal values Sprint near its latest closing share price of $6.50.

Andrew Schwartzman, an attorney who specializes in telecommunications and a professor at Georgetown Law, said he expects it will be “difficult” to get regulators to sign off on the merger.

Sprint and T-Mobile first discussed a merger in 2014 but scrapped it because of concerns about regulatory challenges from the Obama administration.

Schwartzman noted the deal was blocked because regulators determined that the wireless market could support four major players, and having them compete benefited consumers.

“It will be difficult to convince the Justice Department that circumstances have changed so much that it’s necessary to go down to three providers,” he said. “That’s the major hurdle that has to be confronted.”

The companies expected to have a better shot at the merger under the Trump administration.

Sprint stock tanks as T-Mobile merger said to collapse

SoftBank CEO Masayoshi Son met with President Donald Trump the month before he took office to talk up an investment in US businesses.

A few weeks later, T-Mobile’s Legere said he was open to “various forms of consolidation” when asked about a potential merger with Sprint and SoftBank under the Trump administration.

But last November, after much speculation, the two companies issued a statement saying they had “ceased talks.”

“While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own,” Marcelo Claure, the Sprint CEO, said at the time.

Sprint and T-Mobile’s announcement is just the latest step in an ongoing movement towards telecom consolidation. AT&T is in talks to acquire Time Warner, which owns CNN. The outcome of that $85 billion merger-in-the-making depends on a case in federal court, which is pending the decision of the judge. </s> CLOSE Both network carriers say this is a way to stay competitive in the race to have the fastest 5G network. If approved, Sprint will be absorbed into T-Mobile. USA TODAY

T-Mobile and Sprint signage. The two companies are reportedly in merger talks. (Photo: Justin Lane/Erik Lesser, EPA-EFE)

T-Mobile and Sprint are combining in a deal that would create a bigger No. 3 cellular carrier in the U.S., but could also signal the end of an era of aggressive competition for customers.

The merger, an all-stock deal announced Sunday after years of on-again-off-again courting, would create a company using the name T-Mobile. It would value Sprint at $59 billion and the combined companies at $146 billion, including debt. Excluding debt, the deal would value Sprint at about $26 billion.

T-Mobile and Sprint say their merger, if approved by regulators, would mean lower customer prices, greater innovation, more jobs and better wireless service, especially in the rural U.S. They also tout the deal as a way to best position the companies to compete in the forthcoming 5G race for faster mobile Internet. But critics worry that the merger will curb competition and result in job losses.

T-Mobile's stock price fell 6.22% Monday, and Sprint's slid13.69%, as worries about the deal's approval bubbled up on Wall Street.

Angelo Zino, an analyst with CFRA Research, puts the odds of regulatory approval at 50%, "at best," because "it will be difficult to prove fewer carriers will be good for consumers."

More: T-Mobile and Sprint merger could cool cell-phone wars, which have benefited customers

The new company, which would have more than 90 million retail wireless subscribers, still trails the top two carriers, with AT&T reaching 93 million subscribers, and Verizon 116 million.

"It's a very simple rule of business. Both companies need each other," said Sprint CEO Marcelo Claure told investors on a conference call Sunday. "The reason why this is going to work is that T-Mobile cannot do the 5G strategy without Sprint and Sprint cannot do it without T-Mobile."

An AT&T spokesperson declined to comment on the deal; Verizon did not respond to a similar USA TODAY request for comment.

New jobs or fewer jobs

The executives said the merger will result in thousands of new jobs right away, with the potential to create "tens of thousands" later. The merged company's plans to invest up to $40 billion in its new network and business in the first three years alone is a massive capital outlay that could fuel job growth across related sectors, too.

But analysts say job cuts are inevitable with so many business-function redundancies between T-Mobile and Sprint. These could number in the tens of thousands and call centers could take the heaviest brunt. The two companies employ more than 80,000 people.

The new company is expected to achieve $6 billion in synergies — redundancies between the two corporations, like sales, marketing, back office functions and customer service — says Roger Entner of Boston-based research firm Recon Analytics. But 93% of that figure is operating expenses and the majority of those operating expenses are people.

"Will they be able to (offset) these job losses with new hiring? How much will regulators hold their feet to the fire?" he said.

Lay-offs may become a focal point for opposition. Trump won the White House with a campaign steeped in promises to make life better for the American worker, and he twinned his sweeping 2017 tax cuts with vows of job creation.

Telecommunications workers aren't likely to allow the bigger company to cut jobs or reduce full time positions without a fight. Unions have been pressuring companies like AT&T to return some of that tax windfall to workers in the form of jobs returned to the U.S. from offshore centers and higher wages.

Sprint CEO Marcelo Claure speaks at a the National Council of La Raza Annual Conference Monday, July 13, 2015, in Kansas City, Mo. (Photo: AP Photo/Charlie Riedel)

Worse for consumers?

The deal also risks toning down the cycle of price cuts and improved features the wireless companies have engaged in for the last five years.

Gigi Sohn, a distinguished fellow at the Georgetown Law Institute for Technology Law & Policy, said the deal will mean fewer choices for customers and could prompt the three remaining companies to “act in concert.”

“Consumers will be the losers if T-Mobile and Sprint are allowed to merge,” said Sohn, who served as counselor to former Federal Communications Commission Chairman Tom Wheeler.

“Both companies have been feisty competitors to the two biggest national mobile wireless carriers, Verizon and AT&T," she said..

But Recon's Entner said worries about higher prices are over-blown.

"They’re really intense competitors. Prices will continue to decrease, but how soon will they decrease?"

The two companies executives argue that it's short-sighted to view the competition for customers as fight between phone companies. Cable and broadband companies like Comcast have rolled out their own wireless plans.

"Convergence between mobile broadband and cable isn't just a hypothetical. It's a reality of our business on a day to day basis," said T-Mobile CEO John Legere.

Should the companies merge, Sprint subscribers might see some new pricing arrangements available and could become eligible for T-Mobile promotions such as free Netflix subscriptions.

Those on T-Mobile might get Hulu or Tidal subscriptions in return, which Sprint has been promoting under some of its plans.

More: T-Mobile and Sprint merger could cool cell-phone wars, which have benefited customers

More: T-Mobile CEO: More competition in wireless and beyond in 2018

More: Justice Dept. investigating if AT&T, Verizon make it too hard to switch wireless carriers

Government blessing

The deal still requires regulatory approval and that step is far from assured.

The nation's No. 3 and No. 4 wireless carriers had tried to join forces before. In 2014, they considered merging but eventually called off talks because it was believed the hurdles under the Obama administration were too high.

T-Mobile's growth since then may factor against the new deal. Opponents are likely to argue that halting a merger of the two companies four years ago resulted in a stronger T-Mobile, with more benefits to customers.

Legere, who has aggressively promoted the T-Mobile brand on social media and television — frequently taking swings at rivals — has overseen a more than doubling of T-Mobile's subscriber base since joining the company in 2012. The company dropped a practice of requiring smartphone customers to sign on to onerous two-year contracts and was at the forefront of a return to unlimited data plans.

Sprint's owners have tried to clear the way. SoftBank CEO Masayoshi Son was one of the first technology leaders to throw his support behind Trump, meeting with the then-President-elect in December 2016 at Trump Tower. Trump then announced SoftBank Group planned to invest $50 billion into the U.S. economy and add 50,000 jobs.

The meeting rekindled speculation that SoftBank would renew talks between Sprint and T-Mobile efforts under a Republican administration. But a year later, negotiations between the two companies hit a wall. In early November, both companies said they officially ended merger plans saying they couldn't agree on terms.

If the third time proves a charm, Legere will remain CEO of the new T-Mobile. Marcelo Claure, who co-founded wireless company Brightstar and who was named Sprint CEO in 2014, will become a member of T-Mobile's board.

Mike Sievert, T-Mobile's current chief operating officer, will become president and COO of the new T-Mobile.

T-Mobile's parent company, Deutsche Telekom, would own 42% of the combined company. Sprint's parent, Japanese telecom titan SoftBank Group, run by Sprint chairman Son, would own 27% while the remaining ownership would be public.

Contributing: Eli Blumenthal and Mike Snider

Read or Share this story: https://usat.ly/2KpOCKb </s> • T-Mobile will acquire Sprint in a deal that values the combined company at $146 billion.
• Current T-Mobile US CEO John Legere retain his role at the combined company, which will keep the T-Mobile name.
• Sprint tanked 12% as investors worried that the deal might not pass anti-trust scrutiny on the news, while T-Mobile US is down slightly.

Shares of Sprint fell as much as 12% in early trading Monday amid growing concern the wireless carrier's proposed its merger with T-Mobile in a deal that values the combined company at $146 billion may not pass regulatory scrutiny.

T-Mobile USA CEO John Legere made the announcement by tweeting a seven-minute video breaking down the merger, while also including a link to a website further explaining the combination. Germany's Deutsche Telekom owns two-thirds of T-Mobile, and will control the newly formed entity.

The announcement on Sunday marks the culmination of four years of on-again, off-again discussions between T-Mobile and Sprint — and was the third time the two rivals had tried to merge.

With 127 million customers between them, the two newly teamed companies are expected to compete directly with Verizon— the nation's number one carrier — and second-place AT&T. That's where the concern comes in.

For evidence that the deal which will combine the third- and fourth-largest US wireless carriers, is expected to come under serious scrutiny from antitrust regulators that, one need not look further than how fervently the Trump administration has opposed AT&T's proposed mega-acquisition of Time Warner.

In November, the US Department of Justice sued to block AT&T's proposed $84.5 billion takeover of the cable giant. President Trump himself said on the campaign trail in October 2016 that such deals would result in "too much concentration in the hands of too few," and "deals like this destroy democracy."

However, Sprint and T-Mobile face a different challenge. While AT&T's proposed merger was a so-called "vertical" deal, in that the two firms aren't direct competitors and the new company would be vertically integrated to combined film/TV production with distribution, T-Mobile and Sprint are direct competitors and consumers will have one less competitive choice if the deal goes through.

"I think it's very hard to imagine DOJ just giving this deal a pass, given how much it would increase concentration in key segments of the wireless market," Gene Kimmelman, former DOJ official and CEO of Public Knowledge, told Axios.

T-Mobile and Sprint's proposed deal involves T-Mobile exchanging 9.75 Sprint shares per unit of T-Mobile. Deutsche Telekom will own 42% of the combined company, while SoftBank — which controls 85% of Sprint — will own 27%. The remaining 31% will be held by the public.

Sprint's stock has surged 26% since the Wall Street Journal reported on April 10 that the two companies had rekindled merger talks. T-Mobile's stock has risen 8% over the same period.

The all-stock transaction values Sprint at 0.10256 per T-Mobile share, or $6.62 a share, based on T-Mobile's last closing price. That valued Sprint at around $26 billion. T-Mobile had a market value of $55 billion as of Friday's close, and the two companies have roughly $60 billion of combined debt.

Shares of Sprint are up 9% since the beginning of 2018, while T-Mobile is flat year-to-date. </s> T-Mobile and Sprint say they have agreed to a US$26 billion all-stock deal and believe they can win over skeptical regulators because the merger would create thousands of jobs and help the United States beat China to creating the next generation mobile network.

The agreement capped four years of on-and-off talks between the third and fourth largest U.S. wireless carriers, setting the stage for the creation of a company with 127 million customers that will be a more formidable competitor to the top two wireless players, Verizon Communications and AT&T.

U.S. regulators, who have challenged in court AT&T's US$85 billion deal to buy U.S. media company Time Warner, are expected to grill Sprint and T-Mobile on how they will price their combined wireless offerings.

Verizon has 116 million U.S. wireless customers, according to a spokesman, while AT&T has 93 million branded customers, as of the first quarter.

Their first round of merger talks ended unsuccessfully in 2014 after the administration of then-U.S. President Barack Obama expressed antitrust concerns.

The new deal will create the highest-capacity U.S. network, lower prices, create jobs and improve service in rural areas, said John Legere, the chief executive of T-Mobile and the new head of the proposed combined company.

The combined company, which will be called T-Mobile, will invest $40 billion over the next three years to upgrade its networks to accommodate the next generation 5G wireless technology, which is expected to have the speeds necessary to power drones and self-driving cars, Legere said in a statement.

The companies said during a conference call with analysts that the recent U.S. tax overhaul would have a positive impact, and the combined company would not be a significant taxpayer until 2025.

T-Mobile and Sprint said they expected to complete their deal no later than the first half of 2019, an ambitious goal given the intense U.S. regulatory scrutiny it will be subjected to. T-Mobile will not be liable to pay Sprint a breakup fee should regulators block the deal, according to sources who asked not to be identified because that detail in their contract had not yet been made public.

The companies said they expected U.S. regulators would see the benefits of the deal.

“This isn’t a case of going from four to three wireless companies – there are now at least seven or eight big competitors in this converging market," Legere said, referring to cable companies as wireless competitors. Other companies also would be forced to accelerate their investments in the face of a combined T-Mobile-Sprint, the companies added.

A spokeswoman for Federal Communications Commission Chairman Ajit Pai declined to comment on Sunday on the proposed merger. The FCC will decide whether to grant the deal regulatory approval if it is in the “public interest,” the spokeswoman added.

CTIA, a trade organization that represents the U.S. wireless communications industry, ranks the United States behind China and South Korea in 5G readiness. The Chinese government launched a plan targeting 5G deployment by 2020, with three carriers committed to the timeline.

Legere said the deal would likely lead to lower prices from AT&T and Verizon, as well as Comcast.

AT&T declined to comment. Comcast could not immediately be reached for comment.

Verizon declined to comment on prices but said it remained committed to building a 5G network.

The breakthrough in the companies' negotiations came after T-Mobile majority-owner Deutsche Telekom and Japan's SoftBank, which controls Sprint, agreed on a structure that would allow Deutsche Telekom to continue to consolidate the combined company, which will have a market value of over $80 billion, on its books.

Deutsche Telekom will own 42 percent of the combined company, and will control the board of the combined company, nominating nine of the 14 directors. Legere will also serve as a director.

The implied equity valuation for Sprint is $6.62 per share based on T-Mobile's closing share price on Friday. Sprint shares closed on Friday at $6.50.

The all-stock transaction is at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share, or the equivalent of 9.75 Sprint shares for each T-Mobile US share.

Tokyo-based SoftBank and Deutsche Telekom will sign a voting rights agreement that will give Deutsche Telekom access to voting rights for a total of 69 percent of T-Mobile shares.

The second round of talks between Sprint and T-Mobile ended in November over valuation disagreements.

Since then, Sprint's shares lost about a fifth of their value amid questions about how the company can compete effectively under the weight of its long-term debt of more than $32 billion.

T-Mobile's market capitalization is $54.7 billion, while Sprint is valued by the deal at $26 billion.

Read more: NZ tech and telco sectors in the spotlight

Even though Sprint's customer base has expanded under CEO Marcelo Claure, growth has been driven by discounting. Analysts say that without T-Mobile, Sprint lacks the scale needed to invest in its network and to compete in a saturated market.

T-Mobile has fared better than Sprint, even if it remains a distant third to Verizon and AT&T. It has managed to score sustained market-share gains, as innovative offerings, improving network performance and good customer service attract new customers, according to Moody’s Investors Service Inc.

T-Mobile became the first major U.S. carrier to eliminate two-year contracts, a shift quickly embraced by consumers and copied by competitors. The company has also badgered rivals with its unlimited data plans.

Both Sprint and T-Mobile are far behind Verizon and AT&T in upgrading their network to accommodate next generation 5G wireless technology. Even after their merger, the combined company's budget to invest in 5G will be smaller than that of Verizon or AT&T.

Sprint and T-Mobile hope the deal will give them more firepower to participate in auction for spectrum to develop 5G. They plan to participate in a spectrum auction in late autumn and will request a waiver if the merger prevents the companies from participating.

PJT Partners, Goldman Sachs, Deutsche Bank and Evercore served as advisers for T-Mobile. The Raine Group, J.P. Morgan and Centerview Partners LLC advised Sprint. </s> OVERLAND PARK (dpa-AFX) - T-Mobile has reportedly signed a merger deal with Sprint. T-Mobile parent would control the combined company and T-Mobile President and CEO John Legere is expected to run the combined entity.



According to WSJ, T-Mobile will exchange 9.75 Sprint shares for each T-Mobile share. T-Mobile parent Deutsche Telekom will own 42% of the combined company and Sprint parent SoftBank Group will own 27%. The remaining 31% will be held by the public.



The all-stock deal would merge Sprint, which has a market value of $26 billion, with T-Mobile, which has a market value of $55 billion. The merger would create the No. 3 US cellular carrier, behind Verizon and AT&T, however, it could end the ongoing competitive pricing.



Deutsche Telekom would also control voting rights over 69% and appoint nine of its 14 directors. The companies said they hope to close the deal in the first half of 2019.



T-Mobile has about 73 million subscribers and Sprint around 54 million, which compares to 141 million subscribers for AT&T and 162 million subscribers for Verizon.



Both the companies consider merger as the best way to go forward as it will help them be in a better position to compete with AT&T and Verizon in the forthcoming 5G race.



'It's a very simple rule of business. Both companies need each other. The reason why this is going to work is that T-Mobile cannot do the 5G strategy without Sprint and Sprint cannot do it without T-Mobile,' said Sprint CEO Marcelo Claure according CNBC report.



'Convergence between mobile broadband and cable isn't just a hypothetical,' said T-Mobile CEO John Legere. 'It's a reality of our business on a day to day basis.'



Copyright RTT News/dpa-AFX </s> WASHINGTON, July 26 (Reuters) - The U.S. Justice Department said on Friday it is approving T-Mobile US Inc's$26 billion takeover of rival Sprint Corp , clearing a major hurdle to a deal that would merge the nation's third and fourth largest wireless carriers.

The companies have agreed to divest Sprint's prepaid businesses including Boost Mobile to Dish Network Corp in order to move ahead with the merger, which was announced in April 2018.

T-Mobile Chief Executive Officer John Legere, who will be the CEO of the combined company, said it would deliver a 5G network with lower prices, better quality and thousands of jobs, while unlocking $43 billion in synergies.

"We are pleased that our previously announced target synergies, profitability and long-term cash generation have not changed," Legere said.

On Friday, the Justice Department and five state attorneys general said they were filing suit to enforce the settlement conditions that also include selling Virgin Mobile and Sprint prepaid and providing Dish with access to 20,000 cell sites and hundreds of retail locations.

Dish has agreed to acquire spectrum in a deal valued at $3.6 billion from the merged firm and pay $1.4 billion for Sprint's prepaid business that serves about 9.3 million customers. Dish will get access to the combined firm's network for seven years while it builds out its own 5G network.

Shares of T-Mobile, which is about 63 percent owned by Deutsche Telekom AG , were up 3.7% at $82.90. Shares of Sprint, which is about 84 percent owned by Softbank Group Corp , were up 6.5% at $7.92.

Prepaid wireless phones are generally sought by lower-income people who cannot pass a credit check.

T-Mobile, the third largest U.S. wireless carrier with about 80 million customers, pursued the deal in order to seek scale to compete with bigger rivals Verizon Communications Inc and AT&T Inc . Sprint has about 55 million customers.

T-Mobile US on Thursday beat analysts' estimates for second-quarter net new phone subscribers who pay a monthly bill, boosted by the U.S. mobile carrier's wireless plans aimed at fending off its bigger rivals. The mobile carrier said it added a net 710,000 phone subscribers in the three months ended June 30.

Federal Communications Commission Chairman Ajit Pai has given his blessing to the merger in principle and said in a statement on Friday he would soon circulate a formal order.

The FCC is expected to give Dish more time to use spectrum it previously acquired but also impose strict penalties if it fails to create a consumer wireless network within a set timeframe.
T-Mobile US and Sprint agree to merge in a deal valued at US$146 billion. The merger is subject to approval from regulators.