, ,

T-Mobile is reportedly asking for $1 billion in breakup fees if the Sprint deal doesn’t get approved

T-Mobile Store

Sprint and Softbank have been trying to snatch up T-Mobile from the past few months now. And they have faced several authoritative hurdles along the way, which have cast a dark shadow over the future of this deal. Softbank CEO has been particularly clear that they wouldn’t want the deal to fail which would cost them a lot of money in breakup fees. But T-Mobile is now reportedly asking the two carriers to pay $1 billion if the deal doesn’t go through, which is something the Softbank CEO wanted to avoid in the first place.

Sprint and its parent company Softbank have been particularly keen on placing a bid for the acquisition, but only after making sure that it will be approved. Their most recent meeting with the authorities didn’t go as planned and with T-Mobile now demanding a breakup fee in case things go awry, the two carriers are in a spot of bother. AT&T had to pay T-Mobile $3 billion in breakup fees when their proposed acquisition wasn’t approved a couple of years ago, so Sprint and Softbank would want to avoid such a situation as neither carrier can afford to lose money in this economic climate.

It will be interesting to see how things pan out in the coming months and if Sprint and Softbank will stand down from the acquisition fearing hefty breakup fees.

Source: The Wall Street Journal

Via: Android Authority