Snacks
Merge

That big T-Mobile & Sprint merger will reportedly be denied

Snacks / Wednesday, April 17, 2019

You don't have my blessing... That's the word from the Dept. of Justice regarding T-Mobile and Sprint's planned merger, which was announced almost 1 year ago. According to the Wall Street Journal, the reason it's likely to get blocked is that combining the #3 and #4 wireless companies would threaten competition.

Like you and your S.O. post-move-in... Sprint and T-Mobile want to get on one plan to save costs. Merging would also pool resources so they could build out a 5G network (they've been repeating that argument to China-phobic politicians). But they'll also be under less pressure to offer low prices to customers. And antitrust laws aren't cool with that last part.

Wireless investors want this merger to happen... which is a reason why customers probably shouldn't. With less competition, big companies can set prices higher — Customers pay more, companies take more profits. And word that the deal's in jeopardy hit shares of the top four wireless companies, even though T-Mobile's CEO called the report "simply untrue":

  1. Verizon ⬇️1%
  2. AT&T ⬇️1%
  3. T-Mobile ⬇️4%
  4. Sprint ⬇️8%

Get Your News

Subscribe and thrive

Snacks provides fresh takes on the financial news you need to start your day. Chartr provides data visualizations on business, entertainment, and society. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.