Deutsche Telekom Denies it But Recent Moves Suggest Imminent Sale of T-Mobile

Discussion in 'Android News' started by dgstorm, Jan 17, 2014.

  1. dgstorm

    dgstorm Editor in Chief
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    It looks like all the right pegs are starting to fall into place for Sprint's primary owner, Softbank, to buyout T-Mobile from Deutsche Telekom. Recent financial moves by Deutsche Telekom strongly suggest they are at least in the planning stages of such a sale. They transferred their 67% ownership of T-Mobile US from a German holding company to a Dutch holding company. They claimed the move was simply part of an internal restructuring, and said that nothing should be read into the action. (That's like North Korea moving most of their army closer to the border and saying there is nothing to worry about.) Analysts are suggesting that Deutsche Telekom moved its T-Mobile holdings because the Netherlands offers favorable tax treatment on asset sales.

    An additional clue comes from an even more recent report. Supposedly, at least two different banks have approached Sprint and each was willing to offer up to $50 Billion dollars for a merger with T-Mo. As the dominos start to fall, it's hard not to think these massive conglomerates won't push forward with this deal. After all is said and done though, the biggest hurdle to this deal will be ramming it through the U.S. regulatory process. If U.S. regulators weren't willing to vet the sale of T-Mobile to AT&T, it's possible they will feel the same way about this deal too.

    Source: Reuters
     
  2. kodiak799

    kodiak799 Gold Member

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    Interesting....I think they will get regulatory approval - a combined Sprint/TMo would have about the same number of subscribers as AT&T and VZW. The two have really struggled to compete on their own, so this is a case where I think going from 4 to 3 major players will actually improve competition.
     
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  3. johnomaz

    johnomaz Silver Member

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    I feel like Sprint would have to be dissolved and TMobile take over.
     
  4. mountainbikermark

    mountainbikermark Super Moderator
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    Agreed. Especially if they can gain some federal revenue from the deal.

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  5. mountainbikermark

    mountainbikermark Super Moderator
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    At the very least no more ...dang it I can't remember the name of their instant talk division. The one with the annoying beep.

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  6. kodiak799

    kodiak799 Gold Member

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    On the bright side, when people jump ship from Sprint to TMo, and vice versa...their attrition will be unchanged :)
     
  7. jspradling7

    jspradling7 Active Member

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    Nextel?
     
  8. dgstorm

    dgstorm Editor in Chief
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    LOL! Classic! :D
     
  9. mountainbikermark

    mountainbikermark Super Moderator
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    Thank you. That's it. I kept thinking Tikle but knew that was wrong.

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  10. jamjr74

    jamjr74 Member

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    Well my family jumped ship from Verizon to Tmobile today!!!! Be interesting to see what goes on with this possible merger!