SoftBank Optimistic About T-Mobile US Inc (NASDAQ:TMUS) Sprint Corp (NYSE:S) Merger

SoftBank Group’s CEO Masayoshi Son believes that there is still hope for a merger between Sprint Corp (NYSE:S) and T-Mobile US Inc (NASDAQ:TMUS).

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The CEO’s hope highlights the time when the two firms were reportedly holding talks about a possible merger. Masayoshi planned to acquire T-Mobile in 2014 when the firm initiated an aggressive transformation strategy. Unfortunately, his intentions were dismissed by the FCC for the sake of fair competition. Masayoshi now claims that a merger between T-Mobile and Sprint is still possible though it would take a lot of time.

The FCC is currently looking for someone new to man the helm and the Softbank CEO wants to exploit this opportunity by reviving merger talks. According to FCC tradition, the FCC chairmen usually resign when a new president assumes office. It is therefore expected that Tom Wheeler will resign once there is a new president. This is vital for Softbank because the FCC has the mandate to submit a proposed deal to an administrative hearing. Bloomberg claims that this is the reason why the company dropped the initial merger plans between T-Mobile and Sprint.

Softbank acquired Sprint in 2012 and although the telecommunications firm has experienced some difficult times over the past few years, it has been experiencing an improvement courtesy of its latest campaigns. Masayoshi argues that Sprint will never become a full-bodied carrier if it continues to exist on its own. The CEO thus states that the company should consider a merger so that it can have a higher chance of securing more success in the future.

Sprint has however been proving that it can steer back on the right path on its own. The company still has a long way to go. A T-Mobile-Sprint conglomerate could be good for customers because the two firms would have a stronger offering by combining their resources. It could also boost competitive advantage for the two firms allowing them to be more sustainable in the market over the long-term.

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