Report: T-Mobile US gains $2B break-up fee, to keep brand, management in Sprint deal

While official word is still forthcoming, the rumors surrounding a possible Sprint offer to acquire T-Mobile US continue to swirl.
The latest round from CNBC claims that T-Mobile US has snared a $2 billion break-up fee from Sprint should the proposed deal fall apart. That amount would nearly match the $3 billion T-Mobile US parent company Deutsche Telekom received from AT&T following the collapse of their proposed deal back in 2011. The DT fee also included $1 billion worth of spectrum in the 1.7/2.1 GHz band.
The report also claims that while the proposed offer is still “weeks away,” the proposal calls for the T-Mobile brand to be kept and that T-Mobile US’ current management team would be running the organization. That would seem to put more pressure on Sprint to ensure that if a deal is indeed proposed, that it would go through in the end. Sprint has already seen a number of executives shown the door following Softbank’s acquisition of a controlling stake last summer and continued operational challenges tied to Sprint’s Network Vision program.
Reports surfaced earlier this month that Sprint owner Softbank had agreed to a $32 billion offer to acquire DT’s controlling interest in T-Mobile US. Analysts seemed to think that rumored amount was on the low side, noting that something closer to $50 per share would seem more reasonable. The federal government rejected AT&T’s planned $39 billion acquisition of T-Mobile US – which was approved by DT – citing competitive concerns.
The Federal Communications Commission has hinted that it was happy with the current layout of four nationwide operators, and earlier this month noted in rulemaking for the upcoming 600 MHz incentive auction and updated spectrum screen that any disruption to the current status quo would result in re-visiting of those rules.
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