Sprint Buy of T-Mobile Would Create a Wireless Contender, Wells Fargo Says
A Sprint/T-Mobile combination would create a stronger competitor and is a deal that could get done, Wells Fargo analyst Jennifer Fritzsche emailed investors. Sprint stock was up 31 percent and T-Mobile 11 percent since the election, as of Monday, she…
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wrote. “Many believe a Republican-dominated FCC and DoJ could open up merger opportunities that had previously been shot down.” A deal would get a close look from regulators, but “the synergies of such a merger (especially on the network side) would be meaningful,” she said. A combined company would have a 25 percent share of the market, versus 43 percent for Verizon and 30 percent for AT&T, Fritzsche said. She predicted Sprint could buy T-Mobile for $72 per share, or $93.4 billion. The combined company would have 286 MHz of nationwide spectrum, she said: “It is also complementary, with [T-Mobile] owning the largest mid-band portfolio along with a growing 700 MHz presence, and [Sprint’s] deep 2.5 GHz holdings a critical component for dense urban areas.” Industry observers said last week a deal is doable, not a slam dunk (see 1612090053).