A verdict regarding the long-delayed megamerger between T-Mobile and Sprint is expected to be announced Tuesday, The New York Times claims.
The ruling would combine America’s third- and fourth-biggest wireless carriers to create one with a massive 100 million customers. It follows an “unusual suit” filed back in June by attorneys general from 13 states, alongside the District of Columbia. They are concerned that a merger would reduce competition in the industry, which could drive up cellphone bills.
Those involved made their final arguments last month. It’s now down to the decision of Judge Victor Marrero of United States District Court in Manhattan. Shares in both Sprint and T-Mobile rose in aftermarket trading. This suggests that investors are confident a deal will take place.
T-Mobile and Sprint say a merger will help them spur growth. Particularly, it will help them to develop 5G technology. This next-gen cellular network technology is likely to get a surge in interest this year thanks to the first 5G iPhone.
The new company will be run by CEO Mike Sievert. Sievert takes over from T-Mobile boss John Legere, who has been chief executive of T-Mobile since 2012.
As part of the new deal, T-Mobile and Sprint will sell off a large part of their businesses to pay-television operator Dish Network. It will form a new major wireless company.
Source: New York Times