Sprint has given up on their efforts to acquire T-Mobile.
According to reports in both the Wall Street Journal
and over at CNBC
, insiders claim that the company finally realized that getting regulatory approval for the deal would be largely impossible. Sprint executives (particularly SoftBank chief Masayoshi Son) seemed somewhat tone deaf
to the fact that regulators were unlikely to approve a deal that reduced the number of overall wireless competitors from four to three, especially after blocking AT&T's attempted acquisition of T-Mobile several years earlier. From the Journal:
Sprint had been working on a bid for T-Mobile for months. But regulators had been working hard as well to head off further consolidation of the already highly concentrated U.S. wireless industry. When Sprint Chairman Masayoshi Son and Mr. Hesse met officials at the Justice Department and Federal Communications Commission over the winter, they were given the signal that a deal would face high hurdles.
The Journal also claims that Sprint will be moving to replace current CEO Dan Hesse. Though Hesse is one of the highest paid executives in the wireless industry, Masayoshi Son had complained about a loser mentality
among the executive leadership at the company. Hesse last week expressed reticence to cut prices and truly battle T-Mobile
for fear of lacking funds to improve the network.
The cancellation of a merger that was never formally announced is largely welcomed by fans of T-Mobile, who hope the company continues to be a thorn in the side of larger competitors for many years to come.Update
claims that Sprint boardmember and Brightstar boss Marcelo Claure will be the new Sprint CEO.