Sprint Agrees To T-Mobile's $32 Billion Asking Price, Other Terms Still Need Hammered Out
The first one is coming to agreement on all of the little details. According to a report in The Wall Street Journal, the two wireless carriers both feel the price is right -- Sprint would pay about $40 per share for T-Mobile. However, a formal contract hasn't yet been drawn up. Lawyers for both sides are working on one, and assuming they don't run into any issues that can't be compromised, an acquisition could take place early this summer.
Once the two sides come up with a contract, the deal would then face regulatory scrutiny. It wasn't too terribly long ago that AT&T failed in its attempt to acquire T-Mobile for $39 billion. In this case, the merger would combine the country's third- and fourth- largest wireless carriers, resulting in a company that's more competitive Verizon and AT&T.
Like AT&T did when it attempted to acquire T-Mobile, Sprint has reportedly agreed to pay a penalty if the deal fails to pass regulatory hurdles. That penalty is $1 billion in cash.