Print 9 comment(s) - last by dew111.. on Dec 30 at 1:55 PM

The deal has been valued at around $20 billion

SoftBank Corp. has already acquired Sprint in the U.S., but it wants to get its hands on T-Mobile as well and is currently talking with the banks in order to do so. 

According to a new report from Reuters, SoftBank -- a Japanese telecommunications and Internet corporation -- has met with at least five banks in an effort to acquire a majority stake in T-Mobile. These banks are Credit Suisse Group AG, Mizuho Bank Ltd, Goldman Sachs Group Inc and Deutsche Bank AG.

SoftBank is looking to grab a majority stake in T-Mobile from its parent company, Deutsche Telekom AG, starting in April. The deal has been valued at around $20 billion. 

The new acquisition would help SoftBank CEO Masayoshi Son reach his goal of making SoftBank the world's biggest mobile Internet company. Acquiring T-Mobile would also help it stand a better chance of becoming the world's No. 2 mobile carrier by revenue.

SoftBank hopes that having both Sprint and T-Mobile will help it compete with the two top players in the U.S. -- Verizon and AT&T. 

However, the company will have to face the U.S. Federal Communications Commission (FCC) and the U.S. Department of Justice (DOJ) first. This will be no easy feat, considering the FCC shot down AT&T's attempt to acquire T-Mobile back in 2011, citing competition issues. 

SoftBank may also have to compete with others bidders for the acquisition. Dish Network Corp. is reportedly interested in T-Mobile as well. 

SoftBank acquired Sprint over the summer for $21.6 billion.

Source: Reuters

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No, no, no, no, NO
By quiksilvr on 12/26/2013 12:14:53 PM , Rating: 3
T-Mobile has nothing to gain from this. Sprint's LTE network is not growing at the rate needed and T-Mobile's is skyrocketing to the point where it is legitimately competing with the big two.

Let true competition happen and see where the chips fall. Stop fusing companies together and actually make them work for it like T-Mobile did.

RE: No, no, no, no, NO
By ERROR666 on 12/26/2013 12:38:47 PM , Rating: 2
I hope it doesn't go through. T-Mobile is the only decent provider in US. Not the best in any single metric but the best when combining all of the metrics together. And they already changed this market for better in the last 2 years. Sprint on the other hand is the worst provider in the country.
DT seems to be determined to sell its stake in tmo no matter what but I just hope it won't be to one of the existing cell phone providers.

RE: No, no, no, no, NO
By Mike Acker on 12/29/2013 7:16:35 AM , Rating: 2
agree 100%

look what Sprint did to Nextel: they destroyed it.

RE: No, no, no, no, NO
By retrospooty on 12/26/2013 1:00:55 PM , Rating: 2
"T-Mobile has nothing to gain from this."

T-Mobile "gaining" may not have anything to do with this. If it does go through, hopefully Sprint takes onthe T-mo model and not vice versa. One is shrinking and one is changing things and growing, so it would make sense to follow the T-Mo path.

RE: No, no, no, no, NO
By Shig on 12/26/2013 6:11:58 PM , Rating: 1
I assure you that T-Mobile share holders do have much to gain from this. Shareholder > customer, sorry.

RE: No, no, no, no, NO
By retrospooty on 12/26/2013 7:12:38 PM , Rating: 2

RE: No, no, no, no, NO
By dew111 on 12/30/2013 1:55:51 PM , Rating: 2
There's a decent chance the DOJ will shut this down. The prepaid marketshare from a merger would be huge (>70% I think), which is hopefully enough to keep them from merging.

By Dr of crap on 12/26/2013 12:28:30 PM , Rating: 2
You didn't have to tell us in this article what to companies make up Verizon or what its stock symbol is?

So much better to read this way - thanks.

RE: what
By Huacanacha on 12/26/2013 2:30:28 PM , Rating: 2
Yep, it's Kaiser not Mick... I'm sure Jason would have crammed all the mobile providers stock tickers in there ;)

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