Sprint Corp could look to adopt the T-Mobile brand if the USD32 billion ‘mega-merger’ between the two firms does go ahead, CNBC reports, citing unnamed sources familiar with the matter. Earlier this month, Bloomberg reported that T-Mobile US’s charismatic CEO John Legere had provisionally been tapped to lead the combined company, with his reputation boosted in recent quarters thanks to consistent subscriber gains at the rejuvenated Deutsche Telekom (DT) subsidiary. The long-rumoured deal between Sprint and T-Mobile could be made public as soon as late July or early August, reports suggest.
TeleGeography notes that the Sprint moniker was first introduced in 1983, following the combination of Southern Pacific Communications (SPC) and General Telephone & Electronics Corporation (GTE), who merged under the ‘GTE Sprint’ brand name. Subsequent years saw the company evolve into US Sprint (1986), Sprint Corporation (1992) and Sprint Nextel (2004), before reverting to Sprint Corp in 2013, following the company’s takeover by Softbank Corp of Japan.
In addition, CNBC notes that the carriers have agreed a USD2 billion break-up fee, double the USD1 billion reported by the Wall Street Journal last month, but still short of the amount paid to T-Mobile in 2011 following the collapse of AT&T’s projected takeover. According to TeleGeography’s GlobalComms Database, as a direct result of AT&T’s failure to complete its proposed USD39 billion takeover of T-Mobile, the DT-owned carrier benefitted from a break-up fee of USD3 billion in cash – as well as a large package of AWS mobile spectrum in 128 Cellular Market Areas (CMAs) – including twelve of the so-called ‘Top 20’ markets.