T-Mobile and Sprint merger gets green light from judge, Sprint stock jumps 60%
After T-Mobile and Sprint got approval for their $26 billion merger from the Department of Justice and the Federal Communications Commission, the last major hurdle was a lawsuit looking to block the deal from Attorneys general from 13 states plus the District of Columbia.
Reported by CNBC this morning, the US District judge that was presiding over the case has approved the merger, as expected. With the official confirmation, Sprint shares have jumped over 60% in pre-market trading this morning.
The two carriers do need to get the approval of the California Public Utilities Commission but that’s not expected to be an issue.
It’s been a long journey for T-Mobile and Sprint to get to this point with the two officially filing their merger deal back in June 2018.
The two are still calling the merged carrier the “New T-Mobile,” you can check out the dedicated website here.
These are the goals T-Mobile and Sprint previously announced for the New T-Mobile:
- Build a world-class nationwide 5G network – leapfrogging Verizon and AT&T.
- Ensure American Consumers Will Pay Less and Get More.
- Allow Millions of Americans to “cut the cord”.
- Bring Rural Americans Better Service.
- New Choices for Video and Enterprise Customers.
- Create Thousands of Additional American Jobs.
The lawsuit that the judge ruled on today brought by the Attorneys general from multiple states was based on concerns that the merger would be bad for consumers by creating less competition in the wireless market. Now that the merger is mostly a done deal, time will tell if the New T-Mobile will deliver on its promises.
Here’s a video from T-Mobile CEO John Legere and Sprint CEO Marcelo Claure from earlier on in the merger process with their pitch for the combined carrier:
What do you think? Are you excited for the merger and what the New T-Mobile will be able to offer? Or do you think they’ll have trouble following through with their goals? Share your thoughts in the comments below!
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