The Department of Justice Recommends Blocking The T-Mobile Merger With Sprint




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people looking at phones

Today the Department of Justice (DOJ) recommended blocking the T-Mobile $26 billion merger deal with Sprint according to sources familiar with the matter. This comes a few days after T-Mobile and Sprint made changes to the deal to get FCC approval. This is a major blow to T-Mobile’s hopes to merge with Sprint something T-Mobile says is needed.

When this deal was first announced T-Mobile’s CEO said: “I’m excited to announce that @TMobile & @Sprint have reached an agreement to come together to form a new company — a larger, stronger competitor that will be a force for positive change for all US consumers and businesses! Watch this & click through for details.” said T-Mobile CEO John Legere, in a tweet Sunday.

On T-Mobile’s website pushing for the merger they say: “It is absolutely imperative that the U.S. extends the global innovation, technology and economic leadership it seized during the 4G era. It is easy to forget now, but the 4G revolution unleashed innovation that led to the modern economy we interact with every day. Lyft, Uber, Snapchat, Tinder, Venmo, Square, Instagram…these are companies that simply do not exist without 4G. But 4G didn’t just create a herd of unicorns. Global leaders such as Facebook, Alphabet, Amazon, and Netflix adapted their businesses and their growth exploded!”

The T-Mobile merger with Sprint is far from dead. AT&T’s merger with Time Warner was also blocked but ended up going forward after AT&T won its appeal. For now, it looks like T-Mobile and Sprint maybe following in AT&T’s footsteps.

*This is breaking news we will update the story as we learn more.

Source: CNBC

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