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Sprint and T-Mobile merger to conclude soon for $16 billion


Sprint and T-Mobile are aiming to become one of the best mobile carriers in United States and it baffles the mind when you imagine both these carriers merging together. According to a report that was recently published in Asia, Sprint and T-Mobile are looking for a merger.sprint-t-mobile-logo

Most of the stakes off T-Mobile are acquired by Deutsche Telekom and Softbank is thinking of buying more than 50 percent of the stakes of T-Mobile. This will be done with the help of stock swaps and cash exchange of about $16 billion. Earlier, Sprint was rumored to be acquiring T-Mobile for $32 billion, but the recent updates suggests that Sprint will be paying $16 billion to acquire the company.

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This transaction is supposed to be financed by eight of the popular banks including Mitsubishi UFJ and Sumitomo Mitsu as well as J.P. Morgan Chase and Deutsche Bank. The financing of the purchase will be effected by SoftBank with the help of Bridge loans and they will be replaced with the debt being lend by Sprint and other solutions.

The fact is that SoftBank is riding low on its fortunes and is already running in debts of $88 billion. However, this situation does not seem to tint the banks a little bit and they have decided to fund the purchase of SoftBank.

It is considered to be a pivotal merger that would benefit both the companies as well as the users of the carriers. Although, SoftBank is taking a big risk considering the debt that it already pays an interest for but the experts hold the view that the merger will prove to be a game changer for the company.

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About David Mayor

david@thenextdigit.com'
Writer and editor of The Next Digit Media, he takes care of iOS, Apple, Mac and other gadgets. He worked at Apple Inc, before joining to TND Media. He was graduated in Bachelor of Journalism & Mass Communication Degree from Cambridge University. All posts by David

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