Following the report of Sprint’s interest in T-Mobile US by Wall Street Journal, the shares of T-Mobile jumped to the biggest one-day gain since October 2012.
Yesterday, the fourth-largest carrier of U.S., T-Mobile shares jumped 8.6% to $27.64 in NYSE and totally the shares of the company rose 39 percent in 2013.
The third-largest carrier, Kansas-based Sprint is reportedly surveying the antitrust concerns and planed to acquire T-Mobile in first half of 2014 and the acquisition might complete by the end of 2014 or in 2015, according to the WSJ report, citing the source close to the matter. If the deal concludes, there will be only 3 major carriers in U.S. This is not first time a carrier is trying to bid on T-Mobile, in 2011, AT&T was interested to buy T-Mobile for $39 billion and later abandoned due to heavy opposition from Justice Department and FCC in U.S.
However, the report also said that the Sprint hasn’t decided to acquire T-Mobile yet and the deal could be worth more than $20 billion depending on the percentage of stake the company buys. By calculating yesterday’s closing share value of T-Mobile, it has a market value of $22 billion.
Currently, Verizon and AT&T are the strongest profitable mobile service providers in U.S., while both Sprint and T-Mobile has been struggling all over the years to turn the firm into profits. Hence the merger of two carriers could bring us a strong carrier in No. 3 position rather than diluted into 3rd and 4th positions in the industry.
Neither T-Mobile nor Sprint acknowledged to comment on the update to The Next Digit. Stay tuned for more updates in this matter.