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T-Mobile, Sprint merger talks reportedly back on

CNBC reports that the companies are in active talks about a stock-for-stock merger that would leave Deutsche Telekom as the majority owner of both carriers.
Written by Natalie Gagliordi, Contributor

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Merger talks are back on between rival wireless carriers Sprint and T-Mobile, according to a report from CNBC.

The latest speculation claims that SoftBank-owned Sprint and Deutsche Telekom-backed T-Mobile are in active talks about a stock-for-stock merger that would leave Deutsche Telekom as the majority owner of both carriers.

Neither T-Mobile nor Sprint commented on the report.

The two companies previously held merger talks in 2014, that time with Sprint angling to become the majority owner of the two carriers, but the deal fell through over regulatory concerns.

Merger talks were reportedly back on earlier this year, with T-Mobile CEO John Legere commenting that a Sprint merger could be a "a potential future outcome" thanks to the softened regulatory environment under President Trump and the new head of the Federal Communications Commission.

Still, a merger between T-Mobile and Sprint -- the nation's No. 3 and No. 4 wireless carriers, respectively -- would face severe regulatory scrutiny. The deal would have to be approved by the Department of Justice, which would no doubt include a lengthy review process and a highly probable risk of rejection.

We'll have to wait and see how this latest hype cycle plays out, but either way, it's worth keeping an eye on. If such a deal did go through, it would create a powerful wireless company capable of taking on Verizon and AT&T.

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