Carrier DOJ antitrust officials told Sprint they might block T-Mobile merger

[EbookReader]

http://arstechnica.com/tech-policy/...told-sprint-they-might-block-t-mobile-merger/

Justice Department officials recently told Sprint board members that a Sprint acquisition of T-Mobile US "could face regulatory difficulties," The Wall Street Journal reported Tuesday night.

"Sprint Corp. board members Masayoshi Son and Dan Hesse met recently with Justice Department officials who said they would view a Sprint acquisition of wireless rival T-Mobile US Inc. with skepticism, people briefed on the conversation said," the Journal reported.

"The message from regulators shouldn't have come as a surprise," the newspaper noted. "In April, the Justice Department wrote in a comment letter to the FCC that the four wireless carriers competed in ways that are important to consumers. The FCC has sent similar signals."

 

[CEmajr]

Yeah I'm beginning to feel like it's just not going to happen.

Looking at the document from the DOJ when they sued to block the AT&T buyout of T-Mobile, one could just replace every mention of "AT&T" with "Softbank/Sprint" and all of the same issues would apply. Maybe even worse now that T-Mobile is doing well.

It might be best for Son not to even formally make an offer and back down. That way he avoids the hefty breakup fee to T-Mobile that he says he can't afford.


Looking back it probably would've been smarter for him to purchase T-Mobile first anyway. Then with Sprint floundering near bankruptcy a year later they could've argued that Sprint needed to be acquired in order to avoid insolvency. T-Mobile adding more customers than all the carriers right now doesn't present a good reason to the DOJ for them needing to be bought out.

 

[maflynn]

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