T-Mobile and Sprint kill merger talks
After weeks of rumors and speculation about a possible merger between T-Mobile and Sprint, the two companies have spoken out and said their discussions have amounted to nothing. In joint statements, the telecoms firms announced that merger talks have come to an end.
The companies were "unable to find mutually agreeable terms," and the decision has been made to "put an end to the extensive speculation around a transaction."
President and CEO of Sprint, Marcelo Claure, said: "While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth. "
He went on to say that his company will continue to battle against Verizon and AT&T:
As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries. We are determined to continue our efforts to change the wireless industry and compete fiercely. We look forward to continuing to take the fight to the duopoly and newly emerging competitors.
The statement put out by John Legere, president and CEO of T-Mobile US, adopted a similar tone:
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. However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance and track record. Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories -- ultimately redefining the mobile Internet as we know it. We've been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless. We won't stop now.