Last ditch efforts to save the merger between T-Mobile and Spirit have failed. According to a new report from Axios, T-Mobile parent company Deutsche Telekom presented Sprint parent company SoftBank with a new offer last night, but again, issues stemmed from who would have control over the new entity…
Both SoftBank and Deutsche Telekom wanted the upper-hand in control over the combined firm and neither were willing to compromise for the sake of achieving the deal.
At the dinner, SoftBank chief Masayoshi Son turned down the offer and the two sides agreed to break off negotiations, ending in Saturday’s joint statement.
“He didn’t want to give up control,” the source said. “He thinks that Sprint is a strategic asset for SoftBank and critical to its future.”
T-Mobile sent a company-wide email addressing the rumors, saying that it has officially ended discussions with Sprint:
There are lots of rumors swirling around – some true and some not. Here’s what’s true – T-Mobile has been talking with Sprint about a potential combination of our companies. Today, we ended those discussions.
It was reported last week that T-Mobile and Sprint were attempting to salvage the merger, with T-Mobile especially not wanting the deal to die. Nevertheless, the two carriers couldn’t come to terms and are now left firmly on their own moving forward.
Axios suggests that moving forward, both Sprint and T-Mobile are probably in need of a different deal as they remain distant competitors to the likes of AT&T and Verizon. Axios notes a deal with a cable company might help solve some problems, but whether or not that comes to fruition remains to be seen.
FTC: We use income earning auto affiliate links. More.