Date
21 September 2017
The race is on for Sprint and T-Mobile to merge before the US government auctions off spectrum. Photo: Bloomberg
The race is on for Sprint and T-Mobile to merge before the US government auctions off spectrum. Photo: Bloomberg

Sprint, T-Mobile get cracking on high-stakes merger

Sprint Corp. and T-Mobile US Inc. have agreed on the general terms of a merger to unite the United States’ third- and fourth-largest wireless operators to take on market leaders Verizon Communications Inc. and AT&T Inc., the Wall Street Journal reported Wednesday.

The informal deal values T-Mobile at around US$32 billion and would see Sprint paying around US$40 a share for T-Mobile, the report said. Sprint would pay T-Mobile more than US$1 billion in cash and other assets if deal is knocked back by US regulators.

Momentum for a deal has risen since the Federal Communications Commission approved rules for a key auction of airwaves held by broadcasters, the report said. The auction is expected to take place next year. 

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