Business Headlines | 3 years ago

T-Mobile US Inc (NASDAQ:TMUS) CEO Suggests He Could Discuss A Merger Soon

Talks about the merger of T-Mobile US Inc (NASDAQ:TMUS) are likely to start in the near future after the company’s CEO John Legere suggested on a call with investors and analysts and Tuesday. Many wireless provider companies are embroiled in a silent moment restricting their executives from divulging any information regarding potential merger during the wireless spectrum auction organized by the Federal Communications Commission.  The auction sells off radio access waves that carry signals from cell towers o cell phones. The auction is on up March 30.

“Nobody is talking right now,” Legere said. “I’ve got news for you. I couldn’t be more excited about the period that’s going to come up when this auction is over.”

An AT&T takeover was blocked in 2012 and another 32 billion offer by Sprint in 2014. It is expected that President Donald Trump’s FCC will be more transparent to a T-Mobile takeover. Earlier in the month, the FCC dropped an inquiry into the telco’s Binge on the program. T-Mobiles is one of the companies that has listed its stock on the Nasdaq Stocks.

Owner of Sprint, SoftBank is the best contender in the deal but faces competition from Comcast Corporation (NASDAQ:CMCSA), another top Nasdaq Stocks company. Additionally, DISH Network Corp (NASDAQ:DISH) is also keenly following the unfolding of the deal and could be drawn in the transaction basing on a 2017 by Legere in which he predicted that the tech company would “no longer be a standalone entity.”

Regardless of who buys T-Mobile, the deal should be executed as fast as possible due to the quick rate at which the company appreciates. This may lead to additional expenses in case the deal is dragged along. The company recorded a 99$ raise in annual profit raising to $1.5 billion on revenue base of $37.2 billion. T-Mobile continues to attract customers from rival companies reaching almost 71.5 million clients in 2016 up from 63 million customers recorded the previous year.

A buyer will have to cough out over $60 billion to take over T-Mobile up from the previous quoted figure of $50 billion the previous year.

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