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T-Mobile and Sprint have reportedly reopened discussions on a potential merger that would create a new mega-player in the US mobile market
Talks over a possible merger between US mobile giants Sprint and T-Mobile have restarted, according to Reuters.
Were the merger to go ahead, the new entity would boast 127 million mobile customers across the US, bringing together the country’s third and fourth largest operators.
Sprint has seen the price of its shares lose approximately 20 per cent since November as it struggles to convince markets that it can manage its $32 billion debt.
Neither side has yet commented on the proposed merger, but were it to go ahead, the new entity would provide a serious challenge to the US markets biggest two players, Verizon and AT&T.
Markets reacted positively to the news of the proposed merger, with both companies’ shares rallying significantly.
Sprint’s stock finished the day’s trading having gained 17 per cent at $6.02 per share. T-Mobile’s shares rose by a slightly less emphatic 5.67 per cent to $63.13 per share.
Wall Street values Sprint at around $25 billion while T-Mobile is valued at $54 billion.
