Another Sprint And T-Mobile Merger Rumor

Posted: Dec 10 2009, 10:26am CST | by , Updated: Aug 10 2010, 7:58am CDT, in Rumors | Rumors

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Citigroup raised Sprint's ratings on Wednesday, leading to a 6% surge in their stock. This good news has lead to analyst speculation (TmoNews) that a merger between T-Mobile and Sprint could happen within the next year. Michael Rollins, an analyst at Citigroup, gives the acquisition a likelihood of 55%. There's good reason for that deja vu you're feeling. This has happened before. More than once, with Sprint and with other carriers. T-Mobile's recent financial woes and crappy Q3 numbers have their parent company, Deutsche Telekom, considering drastic action. An acquisition of or merger with Sprint would certainly be drastic. This is a rumor I wouldn't be terribly surprised to see coming true. T-Mo has excellent customer service, which is an area Sprint lacks. They've managed to turn around a lot of their big problems recently, and T-Mobile needs that same kind of direction to pull out of their rut. Of course, the fact that T-Mobile is GSM while Sprint is CDMA does put a bit of a damper on things.

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<a href="/latest_stories/all/all/5" rel="author">Robert Evans</a>
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