Sprint and T-Mobile end merger negotiations


Claure said in August that while Sprint could sustain itself, cost savings from a transaction were significantly better than remaining a standalone entity.

The companies issued a joint statement Saturday, after a week of speculation, saying they "have ceased talks". It seemed this most recent deal was doomed to failure, as well. "However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance and track record", said John Legere, president and CEO of T-Mobile US, in a prepared statement. Seemingly, Softbank Group and T-Mobile's owner Deutsche Telekom were unable to agree on the ownership ratio for the partnership. "We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth".

Earlier this week, sources claimed SoftBank's board had chose to call off the Sprint-T-mobile merger, the reason being an inability to work out ownership terms with T-Mobile's Deutsche Telekom. The decision to call off merger talks came after a meeting involving the heads of all four companies, according to The Wall Street Journal. Claure, the Sprint CEO, is also a member of SoftBank's board. Earlier reports indicated that Deutsche Telekom would own a majority stake of the combined company if a merger was completed.

Sources speaking to the WSJ claim that T-Mobile has reached out to Sprint with new terms to see if the negotiations can be revived.

Both companies had expressed interest in a tie-up this year, and industry analysts expected T-Mobile to have more leverage in discussions this time around.

Sprint "look [s] forward to continuing to take the fight to the duopoly and newly emerging competitors", Claure said.

T-Mobile, on the other hand, is still the fastest growing and most innovative carrier in the states. "We won't stop now".