T-Mobile and Sprint in talks about a merger which would make them the second biggest carrier in the nation behind AT&T

  • The companies are in active talks about a stock-for-stock merger that would leave Deutsche Telekom as the majority owner of both carriers
  • T-Mobile CEO John Legere is expected to lead any combination that results from a merger
  • Japan's Softbank CEO Masayoshi Son, which owns a majority stake in Sprint has made it clear he wants a say in how the company is run
  • The biggest issue is whether any merger between the No. 3 and No. 4 wireless carriers in the nation would be approved by antitrust regulators 
  • The resulting company would be placed into the No. 2 spot behind AT&T 

By Reuters

Published: | Updated:

Two of the country's largest wireless carriers T-Mobile and Sprint are said to be in active merger talks, which if approved, would make them the second biggest carrier in the country.

Japan's SoftBank Group Corp, which owns a majority stake in Sprint, and T-Mobile parent Deutsche Telekom have been in frequent conversations about a stock-for-stock merger, CNBC reported.

Sprint's shares rose 6.8 percent, while T-Mobile's shares were up nearly 4.6 percent in morning trading.

Wireless carriers Sprint and T-Mobile are reportedly talking again about a merger that would, if completed, vault the resulting company into the No. 2 spot in the industry, behind AT&T

Wireless carriers Sprint and T-Mobile are reportedly talking again about a merger that would, if completed, vault the resulting company into the No. 2 spot in the industry, behind AT&T

T-Mobile Chief Executive John Legere, left, is expected to lead any new combination that results from a merger
SoftBank Chief Executive Masayoshi Son, right, also wants a say

T-Mobile Chief Executive John Legere, left, is expected to lead any new combination that results from a merger. SoftBank Chief Executive Masayoshi Son, right, also wants a say

CNBC reported that the companies are still weeks away from finalizing a deal and believe the chances of reaching that deal are not assured.

With the all-stock nature contemplated, SoftBank would emerge as a large minority holder in any combination.

While T-Mobile Chief Executive John Legere is expected to lead any combination that results from a merger, SoftBank Chief Executive Masayoshi Son has made it clear he would want a say in how the company is run, CNBC said.

Reuters reported in February that SoftBank was prepared to give up control of Sprint to T-Mobile to clinch a merger of the two U.S. wireless carriers.

Sprint and T-Mobile looked at merging once before but were scared off by the possibility the deal would be declined by competition regulators 

Sprint and T-Mobile looked at merging once before but were scared off by the possibility the deal would be declined by competition regulators 

Over three years ago, SoftBank abandoned talks to acquire T-Mobile for Sprint amid opposition from U.S. antitrust regulators. 

That deal would have put SoftBank in control of the merged company, with Deutsche Telekom becoming a minority shareholder.

Since then, T-Mobile has overtaken Sprint in market capitalization - the company is valued at about $51 billion, while Sprint has a market value of about $30 billion.

Sprint was also said to be in talks with cable providers Charter Communications Inc and Comcast Corp for a wireless partnership, according to reports.

Last month, Sprint's chief executive said an announcement on merger talks should come in the 'near future'.

Both Sprint and T-Mobile did not immediately respond to requests for comment, while Deutsche Telekom declined to comment.

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