AT&T CFO thinks that the Sprint and T-Mobile merger is not possible

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AT&T‘s CFO, John Stephens, commented on the recent news that Sprint intends to acquire T-Mobile, and said that he didn’t think that the merger was possible. Stephens mentioned that AT&T has wanted market consolidation in the past, but it didn’t happen. His skepticism towards the merger is possibly because of AT&T’s failed attempt at acquiring T-Mobile in 2011.

Masayoshi Son, the CEO of Softbank, which is the Japanese company that owns Sprint, is much more enthusiastic about the merger, saying that it could ignite a “massive price war” and healthy competition in the U.S. market. Despite this, regulators said in meetings with Softbank and Sprint with the FCC and DOJ that they prefer having the big four companies, even though Verizon and AT&T own 75% of the market. Son mentioned that he thinks the merger would be the only way to challenge the AT&T-Verizon duopoly, and has even raised financing for the merger.

Source: PhoneArena


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