Source: Egos 'Cloud' Sprint/T-Mobile Talks

But that doesn't mean this is the end of the line for M&A negotiations between the third- and fourth-largest US mobile operators.

Dan Jones, Mobile Editor

October 30, 2017

2 Min Read
Source: Egos 'Cloud' Sprint/T-Mobile Talks

The reported breakdown of the Sprint/T-Mobile merger talks is being blamed on ego clashes at the top of Deutsche Telekom and SoftBank, but may not mean the end of the drawn-out M&A negotiations, according to a source that spoke to Light Reading on Monday.

Sprint Corp. (NYSE: S) owner SoftBank Mobile Corp. is planning to break off talks with Deutsche Telekom AG (NYSE: DT) over a proposed merger between Sprint and T-Mobile US Inc. , Japanese newspaper Nikkei Asian Review reported Monday afternoon. The falling out is said to be over which company has the controlling stake in the merged company, with DT wanting a majority stake while the Japanese company is unwilling to cede control.

The talks are said to have become "a little hostile and personal," according to an anonymous source that spoke to us Monday. "There are some ego elements that are clouding the deal," the source added.

The problems are said to be between some of the upper echelons of Deutsche Telekom management and SoftBank CEO Masayoshi Son, with arguments and walkouts occurring at some of the meetings.

Nonetheless, "ultimately, cooler heads will prevail," the source suggested, calling the possible cessation of talks "more of a negotiation tactic" by SoftBank.

Although "it may not happen," the source stated that the long-awaited and much-talked-about deal is still 75%-80% likely. Of course, even if the companies do eventually agree to merge, there are still regulatory hurdles to jump, and the small matter of network integration.

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About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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