This is a discussion about mergers and acquisitions. Sprint and T-Mobile announced on 4/29/18 that they had reached a deal to merge. moving to create a new telecommunications giant- and betting that regulators will finally allow the American wireless market to shrink to just three national players Sprint and T-Mobile have tried unsuccessfully to merge before. They were effectively blocked four years ago by regulators in the Obama administration who worried that shrinking the market for wireless providers would give consumers fewer choices and lead to higher prices. Under the terms of the dealthe companies described it as a merger but T-Mobile would effectively be buying Sprint for about $26.5 billion T-Mobile's controlling shareholder, Deutsche Telekom, would own 42 percent of the combined company Mr. Claure would join its board. SoftBank of Japan, which controls Sprint and whose 1 founder, Masayoshi Son, has long dreamed of merging the two carriers, would own 27 percent. Public shareholders would own the remainder Please read more about this deal. Then discuss the following 1. Would you allow this to proceed? Why or Why not? 2. Does China have something to do with this? Hint... 3. Is this deal bad for consumers? Some say it is not. See this latest report from the New York Times, which came on july 30, 2018. 4. Does it bother you that if this merger goes through, German and japane owners (Deutsche Telecom and SoftBank) will consolidate telecom posi in the USA (They each have strong ownership of Sprint and T-Mo respectively)? Why or Why not? This is a discussion about mergers and acquisitions. Sprint and T-Mobile announced on 4/29/18 that they had reached a deal to merge. moving to create a new telecommunications giant- and betting that regulators will finally allow the American wireless market to shrink to just three national players Sprint and T-Mobile have tried unsuccessfully to merge before. They were effectively blocked four years ago by regulators in the Obama administration who worried that shrinking the market for wireless providers would give consumers fewer choices and lead to higher prices. Under the terms of the dealthe companies described it as a merger but T-Mobile would effectively be buying Sprint for about $26.5 billion T-Mobile's controlling shareholder, Deutsche Telekom, would own 42 percent of the combined company Mr. Claure would join its board. SoftBank of Japan, which controls Sprint and whose 1 founder, Masayoshi Son, has long dreamed of merging the two carriers, would own 27 percent. Public shareholders would own the remainder Please read more about this deal. Then discuss the following 1. Would you allow this to proceed? Why or Why not? 2. Does China have something to do with this? Hint... 3. Is this deal bad for consumers? Some say it is not. See this latest report from the New York Times, which came on july 30, 2018. 4. Does it bother you that if this merger goes through, German and japane owners (Deutsche Telecom and SoftBank) will consolidate telecom posi in the USA (They each have strong ownership of Sprint and T-Mo respectively)? Why or Why not
