Drops its bid for T-Mobile USA
The USA’s third largest MNO [Mobile Network Operator], Sprint (formerly Sprint Nextel) has reportedly dropped its bid for T-Mobile USA in the face of mounting regulatory resistance. T-Mobile USA is, of course, owned by Germany’s Deutsche Telekom whilst Sprint is owned by Japan’s SoftBank. This move followed swiftly after the news that
fourth largest US MNO, T-Mobile USA, had rejected a $15.5 billion (£9.2 billion) takeover bid from a French conglomerate – Iliad. The offer was apparently too low.
After all this kerfuffle, there’s apparently a game of musical chairs going on at Sprint.
Following the failed bid, Sprint has said it has replaced its long-serving CEO, Dan Hesse. The original plan had been to put T-Mobile’s CEO, John Legere, in Hesse’s place.
But that option disappeared with the dropped bid. However, SoftBank acquired mobile phone distributor Brightstar, in 2013 for $1.26 billion.
With that deal came Marcelo Claure who has now taken over as Sprint CEO but the Sprint did not say if Hesse would leave the company.
It seems that US regulators are insisting that they want to keep the number of major MNOs at four.
So much for the USA leading the way over Europe in MNO consolidation, then. In the UK we have four MNOs – down from five.
Shares in Sprint 19.6 per cent and T-Mobile slumped seven per cent in the wake of all this news.