Mobile and Sprint merger still in the works

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T-Mobile and Sprint were said to be in talks of merging earlier this year, once the Trump Administration took office - as this administration is much more relaxed when it comes to regulations, compared to the Obama Administration.

Merger talks are back on between rival wireless carriers Sprint and T-Mobile, according to a report from CNBC. The parent companies of both carriers, Deutsche Telekom and SoftBank, have allegedly been in "frequent conversations" about a deal.

Naturally, all parties declined to comment when reached for comment by CNBC. Shares of T-Mobile are now up over 5% on the day to $65.05, while Sprint's stock is up 7.5% to $8.26.

Of course, to really understand the complications of the deal, we have to recognize that Japan's SoftBank Group Corp owns a majority stake in Sprint and has been in talks with the T-Mobile parent Deutsche Telekom for some time now. Regulators will need to approve this deal, and it's something that both SoftBank and Deutsche Telekom will want to gauge before it makes a deal official.

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Whether any tie-up would gain regulatory approval is still unclear, however.

"Still the synergies are large enough that we continue to believe that at least an attempted merger is a matter of when, not if", MoffettNathanson analysts observed. "Whether both operators can get to a meeting of the minds on whether an attempt makes sense is of course the critical first question".

T-Mobile has not begun due diligence on Sprint, yet another step that could change current price expectations or the willingness to move forward. Moreover, whether that deal gets approved remains the next question.

If a merger were to be completed, it's expected that T-Mobile CEO John Legere would be the leader of the newly-formed Sprint-Mobile.

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