Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  T-Mobile US    TMUS


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

T-Mobile, Sprint Spar Over Dish -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
07/12/2019 | 02:47am EDT

Parties are haggling over satellite-network ownership restrictions and other conditions

By Drew FitzGerald and Brent Kendall 

Negotiations to complete the merger of T-Mobile US Inc. and Sprint Corp. are dragging on as the parties haggle over ownership restrictions and other conditions for Dish Network Corp. once it gets assets from the wireless companies, according to people familiar with the matter.

Discussions are continuing, and all sides remain optimistic they can find common ground on the ownership question and other issues to complete the more than $26 billion merger, the people said.

T-Mobile and Sprint are planning to extend their merger agreement past its July 29 deadline, one of the people said. It would be the second such extension to close a deal that was announced more than a year ago and has run into resistance from federal and state antitrust officials.

The Justice Department has overseen several weeks of negotiations designed to ensure the merger of the third- and fourth-biggest cellphone carriers by subscribers won't lessen competition. Dish, a satellite-TV provider with an ample stockpile of spectrum licenses, has emerged as the favorite to acquire divested assets from the merging companies to develop a new wireless network.

One issue frustrating negotiators in recent days is potential limits on who could own or later buy a part of the new Dish wireless network, which has pushed back on potential ownership caps and change-in-control restrictions, the people said. The company's chairman, Charlie Ergen, owns more than 51% of Dish shares and has a special class of stock that gives him control over 91% of the vote.

T-Mobile and parent Deutsche Telekom AG are seeking to impose ownership limits to prevent the satellite-TV company from turning around and selling parts of the wireless business won through the divestiture process to a cable or technology company, the people familiar with the matter said. The parties have also discussed restrictions on how much traffic Dish can send over the new T-Mobile's network, one of the people said. CNBC previously reported on both issues.

Dish and the cellphone carriers have mostly agreed in principle to a broad deal that would transfer spectrum licenses, prepaid phone customers and other assets to the satellite company. Dish would also get a multiyear agreement to use the wireless companies' network while it builds dedicated infrastructure, some of the people said.

The Justice Department has made its blessing contingent upon the companies shedding enough assets to form a fourth competitor strong enough to vie with giants Verizon Communications Inc., AT&T and the new T-Mobile. Each of those three would have roughly 100 million subscribers or more after the merger.

The deal would help protect more than $21 billion of wireless spectrum licenses Mr. Ergen has amassed in recent years by putting them to work on a customer base. The Federal Communications Commission could rescind some of the licenses if they aren't put to use soon.

The arrangement also could save T-Mobile and Sprint's all-stock merger, which the companies unveiled in April 2018 after several years of failed attempts to combine. FCC Chairman Ajit Pai in May said his commission would support the deal, but the Justice Department's antitrust division hasn't blessed it yet, and the outcome will likely depend on whether the companies can resolve the remaining issues to the department's satisfaction.

Several state attorneys general sued last month to block the merger, arguing that the proposed tie-up would leave cellphone customers with less competition for their business. T-Mobile plans to contest the lawsuit in a trial set to start Oct. 7.

--Sarah Krouse contributed to this article.

Write to Drew FitzGerald at andrew.fitzgerald@wsj.com and Brent Kendall at brent.kendall@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
DEUTSCHE TELEKOM AG 0.84% 14.975 Delayed Quote.0.20%
DEUTSCHE TELEKOM AG 0.67% 14.982 Delayed Quote.1.09%
DISH NETWORK CORPORATION 1.97% 32.59 Delayed Quote.30.52%
SPRINT CORP 0.72% 6.96 Delayed Quote.19.59%
T-MOBILE US 0.62% 78.23 Delayed Quote.22.98%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on T-MOBILE US
08/16THE SUMMER BINGE LIST : Frontline Leaders & Supporters
08/16GOING MOBILE : 7 Ways to Make the Most of a Driverless Commute
08/15T MOBILE US : Mobile Rocks he op Spo for J.D. Power Wireless Purchase Experience..
08/15THE HITS KEEP ON COMING : T-Mobile on Track to Donate $1 Million to Little Leagu..
08/08T MOBILE US : Mobile and he -Mobile Foundaion Launch 2nd Annual Changemaker Chal..
08/08T MOBILE US : Mobile and he -Mobile Foundaion Launch Second-Annual Changemaker C..
08/08Deutsche Telekom confident U.S. merger will still deliver cost savings
08/08DEUTSCHE TELEKOM : U.S. DoJ backing for T-Mobile-Sprint deal a major milestone
08/08Second Tech Fund To Start Investing as Soon as September -- WSJ
08/07T MOBILE US : Mobile Has he New Samsung Galaxy Noe10 and Galaxy Noe10+ wih wo Sw..
More news
Financials (USD)
Sales 2019 45 317 M
EBIT 2019 5 829 M
Net income 2019 3 519 M
Debt 2019 23 108 M
Yield 2019 -
P/E ratio 2019 19,5x
P/E ratio 2020 16,3x
EV / Sales2019 1,98x
EV / Sales2020 1,87x
Capitalization 66 844 M
Duration : Period :
T-Mobile US Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends T-MOBILE US
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 20
Average target price 89,72  $
Last Close Price 78,23  $
Spread / Highest target 45,7%
Spread / Average Target 14,7%
Spread / Lowest Target -9,24%
EPS Revisions
John J. Legere Chief Executive Officer & Director
G. Michael Sievert President, Chief Operating Officer & Director
Timotheus Höttges Chairman
J. Braxton Carter Chief Financial Officer & Executive Vice President
Neville R. Ray Chief Technology Officer & Executive VP
Sector and Competitors
1st jan.Capitalization (M$)
T-MOBILE US22.98%66 434
AT&T22.53%255 526
CHINA MOBILE LTD.-11.01%172 444
NTT DOCOMO INC9.23%81 709
KDDI CORP5.43%59 068