DoJ 'Leans Against' T-Mobile/Sprint Merger – Report
The US Department of Justice is against approving the merger of T-Mobile and Sprint, despite the chairman of the FCC approving the merger on Monday, according to a Bloomberg report.
The remedies proposed for the merger don't go far enough to resolve the DoJ's concerns that the deal risks harming competition, said the person, who asked not to be named because the investigation is confidential, Bloomberg reported Monday.
Earlier Monday, the FCC chairman, Ajit Pai, said he approves the merger, with conditions, such as selling off Sprint's prepaid Boost mobile arm, and fresh 5G commitments..
The DoJ and FCC typically work together on major merger deals and emerge with the same conclusions on whether to approve mergers. Opposition to the deal by the Justice Department would mark a rare break with the FCC.
T-Mobile and Sprint's shares rebounded slightly in the afternoon, after dropping on the DoJ news earlier in the day. Sprint ended the day (Monday) up 18.87% at $7.34, while T-Mobile was up $2.92 (3.87%) at $78.92.
— Dan Jones, Mobile Editor, Light Reading