The telecom sector was buzzing for a few days about a possible merger of Charter Communications and Sprint. However, what looked like the deal of the century for the U.S. telecom sector is not meant to be as Charter clearly indicated they are not interested in acquiring Sprint.
The update from the cable operator made some investors think about how to ensure a merger happens at some point. SoftBank is one of the key investors and holds a major stake in Sprint.
A Charger and Sprint merger would have resulted in the creation of a powerful entity that could turn into a one-stop shop for customers who want internet services and mobile phones. This would also present the opportunity to develop the infrastructure for a possible 5G technology.
SoftBank CEO Masayoshi Son is planning to submit a proposal to Charter for acquiring Sprint at a market capitalization of $101 billion plus another $60 billion in debt. Sources indicate that if this offer is accepted, it could by far be the largest deal in the history of telecommunication giant.
However, SoftBank’s interest in a merger with T-Mobile, another wireless carrier that’s managed by Deutsche Telekom AG, has been in the works since early 2017. No source has substantiated the news and even SoftBank has declined to comment.
A spokesperson for Charter noted that the deal with SoftBank may look attractive, but the company has no interest in acquiring Sprint.
No one from Sprint or T-Mobile was available to comment.