Sprint, T-Mobile shares sink after report says talks off


Sprint and T-Mobile may not end up together after all - at least not in the immediate future.

"Whether or not those issues on governance rise to the level of meaning the deal is off, is not clear", he added. T-Mo is also a little less bad, down $1.66, or 2.6%, at $61.30.

Another report from earlier this month claimed that the two companies were in the final stages of an agreement, and an announcement would come by the end of October.

The Japanese firm SoftBank, which owns Sprint, plans to call off talks with T-Mobile about a merger of the two wireless companies, according to the Nikkei Asian Review.

A merger with T-Mobile could have helped position Sprint as a viable competitor to Verizon and AT&T, the two biggest mobile carriers in the US (Sprint sits at #4 and T-Mobile at #3).

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Deutsche Telekom and T-Mobile declined to comment.

A few weeks later, T-Mobile CEO John Legere said he was open to "various forms of consolidation" when asked about a potential merger with Sprint and SoftBank under the Trump administration.

A merger between Sprint and T-Mobile would have created a company with more than 130 million USA subscribers, just behind Verizon Communications Inc VZ.N and AT&T Inc T.N . Without the merger, the industry could return to the intense price wars that have put pressure on profits for all four major carriers - to the delight of consumers, who have gotten heavy phone discounts and unlimited data service. The companies had been hoping their chances would improve under a more business-friendly Trump administration.

The combination of major carriers - seen as all but inevitable earlier this month - could have been problematic from a regulatory point of view, not to mention the job losses and impact on rates for US consumers and businesses, but the ability of both to go it alone has been in doubt for some time.