No deal! — that’s how merger talks between T-Mobile and Sprint ended.
Shares of Sprint (S) and T-Mobile (TMUS) had already began tumbling in early last week after it was rumored that both companies were set on abandoning talks.
However, this went beyond rumor when both companies issued a joint statement on Saturday, saying they “have ceased talks.”
“While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own,” said Marcelo Claure, Sprint’s CEO.
T-Mobile CEO John Legere also said there were benefits to consolidating, but added that “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.”
This is the second time that both companies have engaged in talks of a merger which have failed to get off the ground.
In 2014, the companies scrapped talks because of concerns about regulatory challenges from the Obama administration.
The companies figured that this time around they would have a better chance at a merger under a supposedly business-friendly Trump administration.
It was not immediately clear what has triggered the recent fallout, but according to reports, both companies could not agree on pricing and governance terms.
Nigel Belle, Readers Bureau, Fellow
Edited by Jesus Chan
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