T-Mobile and Sprint are no longer in talks to merge, with the companies saying on Saturday that they were unable to come to terms on an agreement that would have united the third- and fourth-largest US wireless carriers.
The companies' unusual step of making a joint announcement on the canceled negotiations could indicate they still recognize the merits of a merger and could keep the door open for potential future talks. But T-Mobile lobbed in a last minute counter offer and there was hope again that a deal could be salvaged. The company had eyed the Deutsche Telekom company as a way to grow its own footprint in the U.S. and take on the two big carriers in the nation, AT&T and Verizon.More news: Commerce sets AD/CVD rates after failure to reach US-Canada lumber deal
"The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders", said John Legere, President and CEO of T-Mobile U.S., in a statement.
Mark Stodden, telecom analyst at Moody's, said "To really take the kind of next step from a business that has been stabilized to a business that has been growing is going to require a new more intense investment phase". Earlier reports indicated that Deutsche Telekom would own a majority stake of the combined company if a merger was completed. The company that has championed unlimited data is now introducing a new plan with unlimited talk, text, and no data. It ... It seemed this most recent deal was doomed to failure, as well.
The companies expected to have a better shot at the merger this year under the Trump administration. But Washington regulators have frowned on a possible merger.