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A T-Mobile, Sprint merger collapses, again.Weighing the pros and cons of the failed deal.
Next up, I wanna talk about T-Mobile and Sprint, over the weekend they both confirmed that they would no longer be merging. There were tons of talks and rumors about the two getting together. Really I had heard from several sources that this was supposed to be a done deal. Turns out it's not, they're going their separate ways. And Sprint offered a better consolation prize on Sunday, announcing that they've struck a wireless resaler deal with cable provider, Altice. If you happen to be in that region, we're actually in the Altice territory, or at least I am. Out on Long Island, you can get Sprint service there. So what were the pros and cons of merging, and why did the cons kind of outweigh it for Sprint or T-Mobile? For Sprint and T-Mobile, a lot of folks on Wall Street projected that this company would save about $50 billion. If they got together shared their resources into investing in their networks, now, positives for consumers for merging would have been, theoretically, these two could have created a really kick **** network with all their combined spectrum assets, they would had a really great coverage that would have been comparable to AT&T, and Verizon, downside is while those two are integrating, you're down to three players, it's lot less competitive. Prices theoretically could've gone up, so there's some pros and cons there. But there are a lot of reasons to be, if you're a consumer, to be happy that these two are going their own way. But I guess, why did they back out at the last minute if this was supposed to go through? So they backed out ultimately because, at least, reportedly Soft Bank wasn't happy with the way the deal was structure because they would become the minority owner. They own Sprint, Soft Bank As background as a Japanese carrier who bought a majority stake in Sprint. Under the combined combination Deutsche Telekom, which is T-Mobile's parent, would have been the majority shareholder. SoftBank would be the minority. They didn't wanna lose that control and so they decided to part ways.