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merger

Report states that Sprint’s acquisition of T-Mobile unlikely to happen

T-Mobile Logo

T-Mobile Logo

The CEO of Deutsche Telekom (parent company of T-Mobile USA), Timotheus Hoettges has mentioned that the merger of T-Mobile and Sprint is unlikely to go through due to regulatory obstacles that lie ahead of them.

It was recently revealed that the FCC wasn’t really convinced with Sprint acquiring T-Mobile, so the CEO’s words don’t come as a surprise. T-Mobile on the other hand is reportedly open to other offers.

Neither carrier can afford for the deal to be shut off after the bid is disclosed, as it would result in major losses for the carriers. This is something which happened when the AT&T/T-Mobile merger fell through due to lack of support from the regulators. Hoettges seemingly has deeper plans for T-Mobile in the U.S., where he will reportedly discuss with the regulators to offer the carrier a bigger chunk of the spectrum during the next auction.

So it seems like T-Mobile will have to run on its own for the foreseeable future, which might not really be a bad idea given the carrier’s massive popularity in the U.S.

Source: Bloomberg

Via: BGR

Sprint and Softbank CEOs to meet FCC officials today to discuss T-Mobile merger

T-Mobile Logo

T-Mobile / Sprint

A new report from The Wall street Journal claims that Dan Hesse of Sprint and Masayoshi Son of Softbank will meet with FCC officials to discuss a possible merger and acquisition of T-Mobile. It was reported in late December that Softbank was in talks to acquire T-Mobile, but things could be much different with Sprint joining the mix.

If the merger gets approval, there would only be three major carriers in the U.S. and this is reportedly a concern among FCC officials. However, as a counter to this argument, Sprint and Softbank are expected to make it clear that the merger of the two carriers will help curb the dominance of the big two (Verizon and AT&T). Sprint has already done its homework about the financial adjustments needed for the merger to go through. So if all goes according to plan, Sprint and T-Mobile could soon become one with the help of Softbank.

But until the FCC approves the merger, there’s no reason for either parties to react. The merger of Sprint and T-Mobile should make things more competitive in the U.S. which is currently dominated by Verizon and AT&T. We’ll keep you posted about this possible merger as we gather additional details.

Source: The Wall Street Journal

Via: Talk Android

Sprint first quarterly results out: Managed to narrow down losses

 

Sprint recently released their first quarter earnings of 2013. The 3rd largest carrier in US managed to narrow down their losses as compared to their previous year’s figure and managed to improve their revenues to $8.8 billion. The company is having a bad phase right now and its plan to leave Nextel may somewhat improve its profitability.

sprint

 

According to the results, the company sold over 5 million smartphones this quarter. Among these, 1.5 million were iPhones which is quite impressive but not that great as last quarter when they managed to sell over 2.2 millions handsets.

The company managed to earn revenue of @8.8 billion and narrowed down its losses to $643 million. Although, the figure is still pretty huge, it is a major improvement from the last quarter’s loss of $1.3 billion. With the company leaving Nextel, it was no surprise that the carrier lost a lot of subscribers. Sprint lost 572,000 customers when they made plans to leave Nextel, however they managed to add 12,000 new subscribers and hence the total figure went down to 560,000. As a result, now Sprint has only about 31.3 million customers on contract.

However, according to the company’s CEO Dan Hesse, this figure is likely to worsen. The company still has over 1.3 million Nextel customers and all of them will be kicked off when the deal completes in the next quarter. The major problem with the carrier was that it focused mainly on sales and marketing on its Nextel part and forgot to divert resources to their main Sprint service. According to CNET, a year ago, the company managed to sign 263,000 customers in the first quarter, however, in this quarter as already mentioned above, it managed to get only about 12,000 customers. This clearly shows that the carrier needs to focus on its service and if it wants to retain its position in the market, it should do much better than the current results. As the deal completes in the second quarter, Mr. Hesse is expecting profits and revenues to fall down. So don’t expect the company to make good profits even in the second quarter and we can expect some improvements only by the end of the year.

When it separates from Nextel, the company would be welcoming new ownership. The company is already in talks with a merger with the Japanese carrier, SoftBank and the deal is likely to close by July 1. Sprint has not been the best of the carriers in the country and with the merger with SoftBank, the carrier may hope to make some progress. SoftBank’s capital along with its leadership experience is sure to help the carrier grow in the coming quarters and we would like to see how the merger affects the company’s shares by the end of the year.

via [Electronista], [CNET]

T-Mobile And MetroPCS Merger Was In The Works Since December 2011

A proxy statement that was filed with the Securities and Exchange Commission (SEC) by MetroPCS says that the merger with T-Mobile USA has been in planning a whole lot longer than what was originally thought. T-Mobile’s parent company, Deutsche Telekon, attempted to merge with T-Mobile USA a mere two days after the company originally failed to sell the company to AT&T. That said, talks of merging the company goes back all the way to December of 2011. That is a lot longer than a lot of us had originally thought.

MetroPCS says that they have been in talks with several wireless carriers to hopefully merge the company. They were also hoping for buyout and spectrum licensing deals before they would settle with T-Mobile’s parent company, Deutsche Telekom. MetroPCS also tried to sell the company to Sprint earlier in the year, which also — obviously — failed. Aside from that, they were also very close to becoming acquired by an anonymous company that is a current roaming partner. Said company had attempted twice to purchase different spectrum’s from a few different satellite companies. That “anonymous” company has still been unnamed.

There is definitely a lot of stuff going on in the wireless industry. While everyone has been confused about the merger with AT&T and T-Mobile, it seems like there has been other stuff in the works. In other news, Google is also planning to get in the wireless industry as well with ties to Dish Network. Although, we shouldn’t get that excited about it. Dish Network does not have a regulatory approval to even begin building their own wireless network with the companies spectrum. Aside from that, they don’t even have the infrastructure that is required for it yet either. Since talks are going on about becoming a wireless carrier, it makes me wonder what Google has up its sleeve since Dish Network obviously does not have the requirements yet.

Wall Street Journal has noted that Dish Network actually tried to acquire MetroPCS back in August for 4 billion USD. This makes me think that Dish Network has had plans for their own wireless network for some time now. Since the MetroPCS deal didn’t work out, maybe they are looking to partner with Google who might have the neccessary resources to start launching that type of network. This is all just speculation right now, but since they tried to acquire MetroPCS to start their own wireless network, they knew that the company already had the spectrum and infrastructure  Does that mean that they know that Google has the necessary infrastructure and spectrum already? It all seems really weird. All I know is that there are some big things coming to the wireless industry, which might come to surface later in 2013.

I’m excited to see what will happen. What do you think about all of these merger possibilities and talks? Does it raise any questions for you? Sound off in the comments below!

source: Android Central

T-Mobile-MetroPCS merger sinks stocks

T-Mobile and MetroPCS have shared to the media their plans of a merger to take on their bigger competitor. Reports suggest that their plans have already been approved and that they are now in the process of ironing out things. These companies are the fourth and the fifth largest wireless carriers in the United States, respectively.

The merger is designed to pose better competition against AT&T, Verizon and Sprint and it seems logical to think there would soon be a bigger company taking on the key players in the industry. Analysts, however, do not see it like that.

Kevin Smithen at Macquarie Capital wasn’t so optimistic about the merger saying both companies have their own shares of great losses. “You can’t make soup with two leaky pots,” Smithen said. T-Mobile is still experiencing a persistent loss of customers and the deal is definitely not a cure.

Shares of MetroPCS went down 10 percent in morning trading but were able to recover after Bloomberg reported Sprint Nextel Corp was planning to post a counterbid against T-Mobile’s offer. The plunge may not have been the company’s first but it’s a sign that the merger isn’t as good as what ordinary people would think.

T-Mobile USA’s parent company, Deutsche Telekom AG, has its shares plunged up to 3.7 percent in European trading. This just shows that while both companies are looking forward to gaining better momentum in the global market, they might suffer a considerable loss before they could make a rebound.

Under the merger, T-Mobile USA and MetroPCS would be combined into one company. The latter’s shareholders would get $1.5 billion in cash plus 26% of the shares. While many would think there would be a change of brand, there isn’t. T-Mobile would still be the name to appear in the U.S. market, albeit the two consumer brands will operate separately. Presumably, there would still be a T-Mobile and MetroPCS phone line-ups.

The proposal for the said merger is still pending approval and the deal might be closed in the first half of 2013. But until then, it would be put under close scrutiny.

[source: BusinessWeek]

Rumor: AT&T To Buy Cricket Wireless (Leap) Analysts Say Not Likely

Ever since the failed merger of AT&T and T-Mobile, speculation has been running rampant as to what AT&T is going to do next to help with the “spectrum crunch” and AT&T’s rising number of customers. Rumors have circulated that AT&T may consider buying MetroPCS or Leap Wireless, the parent company to Cricket Wireless.

Cricket said themselves on their Q4 earnings call this week that they were in negotiations to possibly sell themselves to the nation’s second largest carrier. According to this report, on the pando ticker, Leap is one of the most likely acquisition candidates for AT&T.

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DOJ Approves Google Motorola Mobility Merger

On Monday we reported that the European Union’s regulators approved the pending sale of Motorola Mobility to #google.

Now, it looks like the United States Department of Justice has approved the pending merger as well.  The DOJ has closed the antitrust investigation and released this statement saying the acquasition was “unlikely to substantially lessen competition.”

The approval from the Department of Justice paves the way for Google to continue with the transaction and close it by signing the appropriate paperwork and writing a check. Google has said that one of the main reasons they are purchasing Motorola Mobility is the large stash of patents that Motorola has.

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European Regulators Approve Google’s Merger With Motorola Mobility

At one point in time it was believed that getting European Union approval of the proposed Google/Motorola merger would be one of the hardest parts of completing the whole deal. It looks like that wasn’t the case as Google announced this morning that European regulators have approved Google’s purchase of Motorola.

This comes fresh on the heels of news that Google has started a beta test of a “Next Generation Portable Communications Device” with their own employees throughout the US.

This also means that the only thing left to tackle for the $12.5 billion dollar deal, is US regulatory approval.  The Google/Motorola merger, sometimes being referred to as “Googarola” has a much better chance of getting approved than the failed AT&T/T-Mobile deal from last year.

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Rumor: Google’s Nikesh Arora To Be Names Motorola Unit CEO Post Merger

credit: Reuters/Youtube via SAI

Several Silicon Valley area websites are reporting that current Motorola Mobility CEO, Sanjay Jha may be out after the merger with Google is complete. If that’s the case Jha has a golden parachute and will be just fine, but who does that leave to run Motorola?

If the rumors circulating Tuesday are true than Google’s Senior Vice President, and Chief Business Officer, Nikesh Arora will fill that void.

According to Silicon Alley Insider (Business Insider), Arora was on the short list to become CEO of Yahoo.   In a bid to keep Arora aboard at Google, the Motorola Mobility top spot may have been offered to him.

source: SAI

Sprint Releases Statement On Official Break Up Of AT&T/T-Mobile

Sprint CEO Dan Hesse Photo credit: TDG

Monday afternoon AT&T announced that they were no longer seeking to merge with T-Mobile. That leaves AT&T on the hook for a $4 billion dollar break up payment to the nations 4th largest carrier.

It hasn’t looked good for the proposed merger since Thanksgiving. That was when AT&T withdrew it’s application to merge with T-Mobile after FCC Chairman Julius Genachowki has asked for an administrative hearing on the pending merger.

Sprint has been a huge opponent of the merger since it was announced the day before last spring’s CTIA Mobile Life convention in Orlando Florida.

Sprint issued this official statement: (after the break)

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AT&T Issues Statement On T-Mobile Merger

Things aren’t looking good for AT&T and their quest to merge with T-Mobile. As we all know by now AT&T withdrew their application to merge with T-Mobile over the Thanksgiving holiday.  Now they’ve asked the department of justice to postpone their court case until January, however they definitely don’t want the DOJ to throw out the case.

Today they issued a statement on where they are with the merger:

“AT&T and Deutsche Telekom advised Judge Huvelle this morning that they wish to stay any further Court proceedings until January 18, 2012, to allow the two companies time to evaluate all options.  The U.S. Department of Justice joined in the filing.

“AT&T is committed to working with Deutsche Telekom to find a solution that is in the best interests of our respective customers, shareholders and employees.  We are actively considering whether and how to revise our current transaction to achieve the necessary regulatory approvals so that we can deliver the capacity enhancements and improved customer service that can only be derived from combining our two companies’ wireless assets.”

As we interpreted the statement it looks like AT&T may be rethinking the entire merger. Shortly after withdrawing their application it was reported that AT&T and Deutsche Telekom may be exploring options for a joint venture of sorts.

source: AT&T

Department Of Justice May Withdraw AT&T Lawsuit Which Would Be Bad News For Them

Typically withdrawing a lawsuit would be seen as a victory for the defendant but not in the case of the nations second largest wireless carrier AT&T.

The Department of Justice is considering whether or not to halt or withdraw it’s lawsuit against AT&T and their proposed merger with T-Mobile, the nations fourth largest wireless carrier. This seems like a no brainer as over Thanksgiving AT&T withdrew their application from the FCC to merge with T-Mobile and that’s exactly the reason cited by the DOJ to stop the lawsuit.

 

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AT&T Responds To FCC Report On Merger With T-Mobile

Over the Thanksgiving Holiday AT&T withdrew it’s application to merge with T-Mobile from the FCC. This came in response to FCC Chairman Julius Genachowski requesting an FCC administrative hearing on the proposed merger.  It was also widely speculated that AT&T was hoping to suppress information that the FCC may release during that hearing.

The FCC took it upon themselves to release the information in a “Staff Report” earlier this week despite the transaction being withdrawn.

 

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FCC Releaes Report On AT&T/T-Mobile Merger Despite Withdrawal

The proposed AT&T/T-Mobile merger came to a head over the Thanskgiving holiday weekend as AT&T and Deutsche Telekom withdrew their application for merging from the Federal Communications Commission (FCC).

Just as many American’s were preparing for their Thanksgiving weekend, FCC Chairman Julius Genachowski had requested that the merger go to an administrative hearing by the FCC which would have happened this week.  Part of the decision to withdraw the application from the FCC was AT&T hoping to curb the FCC from releasing some of their concerns to the public.

Much to the surprise of AT&T and Deutsche Telekom the FCC went ahead and released those findings in a report made public Tuesday.

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