Sprint Corp. and it’s primary shareholder “SoftBank,” have actually officially ended negotiations to buy Sprint Ends T-Mobile United States Inc., currently owned by “Deutsche Telekom.”
Amid regulatory concerns, and a disagreement of financial terms the merger between of the 3rd and 4th largest U.S. wireless providers was officially shut down.. Over the past a number of months, we’ve witnessed various reports about Sprint being in talks with T-Mobile over a buyout deal. As a Matter of fact, while in between surgery, (iPhone & iPad Repairs back to back) a month ago, I read an in depth article on this whole deal. It seemed they were hashing out little details like ,what the termination fee would be for consumers, etc. The invitations were sent out, and the writing etched on the wall announcing the marriage of the 2 wireless giants. But… It didn’t happen.
The Skinny on Why Sprint’s Bid Fell Through With T-Mobile
One of the biggest factors leading to the aborted deal between both wireless giants is the positioning of strength that shifted from Sprint to T-Mobile during the course of the proposed bid and negotiations. Sprint, has lost a great deal of subscribers during the first part of 2014 to other wireless providers. T-Mobile however, has grown significantly in signups throughout that period. Over 900,000 to date, and that was just through June 2014. This firmly place T-Mobile in a position of market strength that Sprint just could not overcome in negotiations. Breaking the wide door open with all this, Bloomberg reported that with forfeiture of Sprint’s bid, there will be another major change. After 6 years at the helm, the company is removing Dan Hesse as CEO, and replacing him with Brightstar creator Marcelo Claure .
What Happened? Was Hesse fired?
Officially? No. That actually has not been confirmed. But per Bloomberg Dan Hesse is getting nice little severance package of about $40 Million. Dan Hesse was pretty vocal about his displeasure regarding the bid for T-Mobile, and I find it hard to believe that most certainly didn’t play a part in his departure. I wonder if he is disappointed in his severance. Would you be? With this development though, perhaps another door will open for yet another suitor in pursuit of T-Mobile. Dish Network lost on a quote for Sprint in 2012 to Softbank, and have been silently viewing the result of this current quote. Their Chairman, “Charlie Ergen” stated last spring that although he hesitated to get into a bidding war with Softbank over yet another cordless business, they would place themselves tactically if the scenario emerged and the discount failed. Maybe it was best this merger did not take place. Some consumers were hesitant about this merger going through. With just 3 significant providers rather than 4, the market would have reduced for consumers to choose from, and most likely raised the rate of service for cellular phones by all the carriers. What are your thoughts?We give LifeTime Warranty for our repairs at Dr Phone Fix & Repair Plantation. If you need cell phone repair visit our store today