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In a transaction that would significantly consolidate the US telecommunications market, T-Mobile is close to joining forces with Sprint: the union is attractive because of the scale and potential for cost-cutting it would bring, allowing the bigger company to increase investments in areas like 5G, thus gaining an edge on the larger wireless carriers.
A merger would create a business with more than 130 million subscribers, just behind Verizon and AT&T. Revenues would top $70 billion and analysts say there would be massive scope to cut costs. Sprint shares were up 5 percent in afternoon trading in New York on Friday to $8.44, giving the company a market capitalization of close to $34 billion. T-Mobile shares were up 0.4 percent to $63.66, giving that company a market capitalization of around $53 billion.
A merger would create a business with more than 130 million subscribers, just behind Verizon and AT&T. Revenues would top $70 billion and analysts say there would be massive scope to cut costs. Sprint shares were up 5 percent in afternoon trading in New York on Friday to $8.44, giving the company a market capitalization of close to $34 billion. T-Mobile shares were up 0.4 percent to $63.66, giving that company a market capitalization of around $53 billion.