T-Mobile US Inc. TMUS 0.66% struck a $26 billion deal to buy Sprint Corp. S 8.33% in a combination that, if allowed by antitrust enforcers, would leave the U.S. wireless market dominated by three national players. It is the third time in the last four years the two rivals have attempted the combination. The leaders of both companies are determined to close a deal, if only because their prospects going it alone grow dimmer by the year.
New technology, stiff competition from wireless rivals and an aging cellphone sector keep driving Sprint and T-Mobile into each other’s arms. Both companies hope to squeeze billions in savings by uniting operations despite their owners’ different management styles and a tough regulatory environment.
The all-stock deal would see T-Mobile, which has a market value of $55 billion, take control of Sprint, which has a market value of $26 billion, both based on Friday’s closing prices. The two companies also have about $60 billion of combined net debt.
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