Sprint Corporation (NYSE:S) has finally left the pursuit of T-Mobile Us Inc (NYSE:PCS), because of the opposition from regulators and replaced its Chief Executive Officer Dan Hesse with Marcelo Claure, a billionaire entrepreneur. T-Mobile Us Inc (NYSE:PCS) was valued at around $32 billion by Sprint Corporation (NYSE:S) and a combination of the two companies would have created a great entity to tackle the industry giants like Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T). Now, after the bid is withdrawn, Sprint Corporation (NYSE:S) will have to rebuild its market and gain the customers it lost in the past years.
Discussing this issue in a
program on CNBC, Scott Nations, Chief Investment Officer & President at NationsShares said that Softbank and Sprint Corporation (NYSE
:S) were bound to call off this bid because this was a major regulatory issue and the regulators would not have allowed this bid.
“The Sprint – T-Mobile Us Inc (NYSE:PCS) deal is a purely regulatory issue, the US justice department had told both of them this winter that they would set a very high bar, and the FCC, our federal communications commission, told them last week that the two companies will not be allowed to bid on Spectrum together. So obviously, the deals are very different. Now what is next for T-mobile? We know that they are on the block, we know that their parent will like to spin them off. A European acquirer, that would probably be the best outlet for T-mobile […],” said Nations.
The takeover call-off dropped the market for both companies. T-Mobile Us Inc (NYSE:PCS)’s shares fell nearly 6% today, while Sprint Corporation (NYSE:S)’s shares tumbled 19% so far on Wednesday.
Disclosure: None
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