Back in November, merger talks between Sprint Corp (NYSE:S) and T-Mobile broke off, and hopes for a deal appeared to be a dead issue. A new report has emerged that suggests the potential for a deal has suddenly risen out of those ashes.
Bloomberg has the scoop on the potential deal for Sprint and T-Mobile.
Sprint Corp. and T-Mobile US Inc. have restarted merger talks, the Wall Street Journal reported, five months after efforts to combine two of the biggest U.S. wireless providers fell apart.
Previous discussions to merge the carriers collapsed in November amid disagreement about who would control the combined operation, according to the Journal. The newspaper said it’s unclear what terms the two sides are considering.
No comment has been forthcoming from either side, but share prices of both rose on news that the talks were back on. Since the deal talks initially fell through, Sprint has continued to focus on shoring up its finances, and the wireless giant has been forced to issue bonds using its wireless spectrum as collateral.
The company has issued $7 billion in bonds thus far, and company officials have indicated that annual upgrade expenses will run as much as $6 billion per year for the next several years.
Sprint Corp shares were trading at $6.08 per share on Tuesday afternoon, up $0.94 (+18.29%). Year-to-date, S has gained 3.23%, versus a -0.14% rise in the benchmark S&P 500 index during the same period.
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