Mobile-Sprint Merger

A merger between T-Mobile and Sprint could produce shareholder value for both companies because both companies are underperforming as stocks and both companies' fortunes rest on the prepaid smartphone market. Both corporations trail market share leaders AT&T and Verizon, with Sprint 3rd and T-Mobile 4th.

Many believe that if these companies do not make a major move soon, they could be squeezed out of the market. Deutsche Telekom has recently ruled out an outright sale of T-Mobile USA, but has indicated possible interest in a partnership.

Reasons to Merge

Both Sprint and T-Mobile have been left out of the iPhone bonanza are being squeezed into lower end of the market, despite their recent technological investments. However, the smartphone market is set for astronomical growth and each company must survive until the smartphone pie gets significantly bigger.

Aside from smartphones, the most promising growth opportunities right now are in...
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