Sprint-T-Mobile deal gets approval from federal judge2020-02-11 18:01 by Daniela
Tags: Sprint, T-Mobile
A district judge on Tuesday approved the $26.5 billion merger between T-Mobile and Sprint, clearing the final hurdle for two of the largest telecom companies in the U.S. to combine despite a challenge from a group of state attorneys general.
The states had argued that the merger could harm competition in the telecom marketplace, while raising concerns it could potentially raise prices for the new company's hundreds of millions of subscribers.
In his ruling, judge Victor Marrero said the merger was unlikely to "substantially lessen competition" and said it was "misleading" to presume the deal would be anticompetitive given the rapid changes in the industry. He credited T-Mobile with having spurred industry leaders AT&T and Verizon to make pro-consumer changes, calling it a "maverick." He also said Sprint had tried to remain competitive but was "falling farther and farther short of the targets it must hit to remain relevant as a significant competitor."
The deal would combine the country's third- and fourth-largest wireless carriers. The new company, to be called T-Mobile, would still be the third-largest, after AT&T and Verizon.
Following the decision, T-Mobile has announced that it is now working with Sprint on the final steps to complete their merger to create the "New T-Mobile," noting that the deal could close as early as April 2020.
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