T-Mobile Doesn't Need Sprint This Bad
A potential sale of assets to Dish in exchange for regulatory approval risks spoiling the merits of the merger.
Is it still worth it?
Photographer: Andrew Harrer/BloombergT-Mobile US Inc. may have found a way to salvage its takeover of Sprint Corp., but it comes at a cost, and leaves one to wonder whether its single-minded focus on sealing the deal is clouding its judgment. It certainly wouldn’t be the first company to let that happen in M&A.
T-Mobile is in talks to sell assets, including wireless spectrum and Sprint’s Boost Mobile prepaid brand, to satellite-TV provider and known spectrum-hoarder Dish Network Corp. for at least $6 billion, Bloomberg News reported Tuesday, citing people familiar with the matter. This is being done in an effort to appease the U.S. Department of Justice, which is concerned about the impact that T-Mobile’s $59 billion acquisition of Sprint will have on consumers’ wallets.