The deal is worth $26 billion. T-Mobile shares rose 5.46%, hitting an all-time high Friday. Sprint shares spiked 7.25% to $7.99 apiece.
But here are the two caveats.
The deal could face lawsuits from 13 different states before it closes. The deal is approved from the viewpoint of the DOJ, but should one of the 13 states have some say, the deal may not close as soon as investors currently anticipate.
Secondly, part of the deal includes the demand that Sprint divest its Boost Mobil and Virgin Mobile business. The combined company must divest wireless assets to Dish Network (DISH - Get Report) . Dish was rising 1.99% to $39.95 a share Friday.
The divestures are nothing new to American mergers and acquisitions activity in 2019. When Disney (DIS - Get Report) acquired Fox assets, the DOJ required Disney to divest several units in order for fair competition in media to be maintained. One asset Disney is selling is the YES Network.
To see the rest of the T-Mobile Sprint story, see TheStreet's Corey Goldman's report.
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