Two of the top five biggest telecommunication companies in the U.S., T-Mobile and Sprint, have been reported to be adding the final touches and embellishments to their merger. Being the leading companies in the business of wireless networks, the merger is considered widely to be a big move for both companies and will effectively see a significant change in their business if the move pushes through.
In a report by Deadline, the current T-Mobile chief executive will be the man in charge of the assets of both companies. The reports regarding the merger have been circulating for a few weeks now, and that type of news has effectively increased the stock values of both companies. This means that stock investors are seeing the business move to yield very positive results. The official announcement is expected to arrive by the end of the month.
Given that there are already investors for the company, it can be surmised that the negotiation talks between the two companies are going quite smoothly. According to Pocket Now, both companies are just finalizing their due diligence. After the routine conducting of the process, both T-Mobile and Sprint will be able to have all the information required to make an informed decision as to whether they will push through with the merger or not.
The due diligence has a lot to do with the earnings of Sprint, which is valued less compared to T-Mobile. Bloomberg News has reported that the stocks of Sprint has fallen by two percent on Oct. 5, which means that T-Mobile will have to evaluate if the merger is still actually worth pursuing. If these results at the end of the month improve, then there will not be much left to stop the merger from taking place.
It is worth noting that when T-Mobile and Sprint are successful in becoming one entity, then they would still fall short on the list of the top telecommunications companies, still placing themselves at third. However, they would still be advancing significantly, as it will put them right up there with their competitors at AT&T since the move will drastically decrease the disparity between the companies.
