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viernes, 3 de junio de 2016

Sprint looking to buy T-Mobile USA

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Sprint, which previously played a merger between AT&T and T-Mobile  is now interested in buying T-Mobile USA based in Seattle for $40 per share. Earlier this year, Sprint was acquired by the  largest mobile communications company in Japan, Softbank. Softbank executives have more than 85% of the shares of Sprint and want to expand their investments to keep up with the competition and become one of the three largest companies in the sector of mobile comunications.


T-Mobile is currently owned by Deutsche Telekom, which has a steady lead in Europe and is another industry giant . If the agreement goes through, the German company will continue owning 16.7% of the merged company. Sprint currently operates with 54.6 million subscribers and T-Mobile has 49.7 million customers in its network. If the agreement is approved, they will be in the same field as AT&T with 106 million and Verizon Wireless (VZ) with 120 million.

Verizon Wireless recently bought Vodafone and became the second US telecom operator after Sprint sell their shares to the Japanese company Softbank. AT & T Mobility is also making moves trying to merge with DirectTV (DTV) to gain a competitive advantage over their competitors. Notable acquisitions include: AT & T acquiring OnStar, Redbox acquiring Verizon, T-Mobile acquiring Metro PCS, and AT & T with the acquisition of Cricket Wireless.

What is interesting about this pending merger is what will happen to the industry. T-Mobile changed the face of the game with the deployment of its no-carrier plan under the leadership of CEO John Legere. Each of its competitors will have to adapt quickly once their customers start to move towards T-Mobile and will have to drastically reduce their prices. If T-Mobile is out of the picture, what will make the remaining three leading companies?

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