Sprint Is Getting Close To Buying T-Mobile In A $US50 Billion Deal

CEO John Legere t-mobileReutersT-Mobile CEO John Legere.

Sprint is close to finalising a deal to buy T-Mobile for $US40 per share, the Wall Street Journal reports.

The deal should be announced this summer, possibly in July. Sprint has reportedly agreed to pay T-Mobile a $US1 billion breakup fee if the deal falls through.

And there’s a good chance it might. Regulators will apply intense scrutiny to a Sprint purchase of T-Mobile. AT&T tried to buy T-Mobile a few years ago, but the government stopped the deal.

Overall, Sprint’s purchase of T-Mobile would be a $US50 billion deal, including debt, according to the WSJ. Deutsche Telekom, the German company that owns a majority stake in T-Mobile, would keep 15% to 20% of the company if the deal goes through.

T-Mobile decline to comment.

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