Sprint and T-Mobile Reportedly in Active Merger Talks

Telecom & Wireless

Published: September 19, 2017 12:10 pm

Last Updated: January 12, 2020 8:02 am

Both Sprint Corp. (NYSE: S) and T-Mobile US Inc. (NASDAQ: TMUS) shares made handy gains on Tuesday after it came to light that these major telecom players were actively in merger talks. These companies rank as the third and fourth largest telecom providers in the United States, and a merger between the two could be huge.

This isn’t the first time that merger talks between these two companies has been on the table. Back in May, Sprint initiated preliminary talks with T-Mobile for a potential merger, according to Bloomberg.

Ultimately the talks aren’t between Sprint and T-Mobile per se, but between the respective parent companies, with SoftBank representing Sprint and Deutsche Telekom representing T-Mobile.

It’s been obvious for years that this industry in particular has been a very crowded space, with Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T) taking the top spots, leaving Sprint and T-Mobile to fight for scraps.

A merger between Sprint and T-Mobile isn’t out of the question, and it would definitely act as a leveling factor for the industry. However, there could be some serious regulatory hoops to jump through. A merger between two of the top four companies in any industry sounds suspect to say the least.

Keep in mind that Sprint and T-Mobile have a combined market cap of roughly $85.5 billion, while AT&T has a market cap of $233.0 billion and Verizon has a market cap of $199.5 billion.

24/7 Wall St.
10 Credit Suisse Top European Stock Picks for US Investors

Shares of Sprint were last seen up 7% at $8.23, with a consensus analyst price target of $7.28 and a 52-week range of $5.83 to $9.65. Excluding Tuesday’s move, the stock is down about 9% year to date.

T-Mobile shares were trading up 4% at $64.39. The stock has a 52-week range of $44.49 to $68.88 and a consensus price target of $71.96. Excluding Tuesday’s move, the stock is up 7.5% year to date.

Verizon traded up 2.5% at $49.28 a share, in a 52-week range of $42.80 to $54.83 and with a consensus price target of $49.59.

Shares of AT&T were last seen up about 2% at $38.13. The consensus price target is $41.03, and a 52-week range is $35.10 to $43.03.

Are You Ahead, or Behind on Retirement? (sponsor)

If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention.

Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.