According to CNBC, T-Mobile and Sprint have restarted their talk on merger. And the stocks of Sprint increased by more than 20 percent on Tuesday after it was reported that the telecommunication company has restarted the merger talks with its peer telecom company, T-Mobile.
After the report, the Sprint’s stocks halted two times in the 20 minutes and surged up to 25 percent. And there was also a jump in the T-Mobile’s shares which surged almost 7 percent instantly after the report.
This is the latest information about the ongoing merger both the companies are aiming for. Last year, they had talk about the merger which ended in November, and both the companies said they couldn’t reach any deal. None of the companies was available to comment on this Tuesday’s report of revived merger talks.
The talks between the companies became complicated in the past because of conflict between Deutsche Telekom, a German company, which holds 63 percent stake in T-Mobile, and SoftBank, a Japanese investment conglomerate, which owns 85 percent stake in Sprint.
The Wall Street Journal had previously reported of merger talks being resumed. Recent talks are still in the initial stages as this was reported by some newspaper. Reuters confirmed that merger talks has resumed.
Sprint and T-Mobile are the 4th and 3rd largest wireless carriers but fell behind the giants of the wireless industry like AT&T and Verizon. A merger would provide each company the required capacity to compete.