This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Sprint Preparing Financing for T-Mobile Bid: Report

NEW YORK (TheStreet) -- Sprint (S) is in the process of raising financing for a takeover bid of competitor T-Mobile (TMUS - Get Report) as the company works to press a merger of the nation's third and fourth largest wireless carriers.

Bloomberg News reported after the market close on Wednesday Sprint has met with half a dozen banks about securing debt financing for the bid, which may be disclosed in June or July.

A merger attempt between Sprint and T-Mobile would be the riskiest attempt at wireless consolidation since AT&T (T - Get Report) failed to buy T-Mobile in 2011. That deal was blocked by the Department of Justice, which continues to believe that a competitive wireless industry would have four nationwide players.

WATCH: More tech videos on TheStreet TV ' More videos from Brittany Umar

According to Bloomberg's report, Sprint and majority investor SoftBank believe they can make a better pitch to antitrust regulators about why a merger should be allowed.

Since taking a controlling 80% stake in Sprint in 2013, Masayoshi Son-run SoftBank has hinted at an eventual bid for T-Mobile. Earlier in 2014, Son made an over hour-long presentation in Washington to outline Sprint's wireless broadband investment plans.

Under SoftBank's ownership, Sprint appears poised to redouble its efforts in wireless coverage expansion, promotional data plans aimed at market share gains, and broadband investment. Meanwhile, both Sprint and T-Mobile are showing traction in winning subscribers from promotional wireless data plans, raising the prospect that prices are falling across the industry.

Such a scenario, while a threat to AT&T and Verizon's (VZ) profit margins, may aid Sprint's merger ambitions.

No debt financing commitments have been signed, and Bloomberg's report states it is unclear who would be tasked with leading a combined Sprint and T-Mobile. T-Mobile CEO John Legere is the leading candidate, Bloomberg said.

The report also indicated that Sprint would try to negotiate a small termination fee.

Comcast As a Blueprint

Sprint's efforts, were they to take shape and eventually be disclosed, come just as Comcast (CMCSA - Get Report) continues to press its efforts at a merger with Time Warner Cable (TWC - Get Report). Were Comcast to succeed in merging the nation's two largest cable and Internet providers, it might give fodder to Sprint's acquisition efforts.

Meanwhile, satellite giants Dish Network (DISH) and DirectTV (DTV) have been increasingly vocal about the prospect of a merger between the two video providers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CMCSA $60.32 -0.17%
S $5.38 3.26%
TWC $157.84 0.22%
TMUS $32.80 0.37%
T $34.00 0.00%


DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs