Sprint/T-Mobile Deal News: S Stock Skyrockets on Expected Approval
The Sprint (NYSE:) merger with T-Mobile (NASDAQ:) appears to finally be getting to the point where the deal will be approved by regulators.
The two companies have reportedly to warrant being approved by regulators–a move that is now expected to happen sooner rather than later. The $26 billion merger will sell Sprint’s Boost Mobile prepaid cellphone brand, while also deploying the next-generation 5G network that will cover 97% of the U.S. at lightning speed, according to a statement from Federal Communications Commission chairman Ajit Pai.
“The companies have also taken steps to respond to concerns that have been raised about this transaction,” Pai said. “Most importantly, in addition to their prior commitment not to raise prices for three years, T-Mobile and Sprint have decided to divest Boost Mobile.
“This sale is designed to address potential competitive issues that have been identified in the prepaid wireless segment,” he added. Pai added that he will recommend that the agency approve the deal, which will also require approval from the U.S. Justice Department.
The deal has plenty of people who oppose due to the move leading to the elimination of one of the four largest wireless providers, which may lead to higher prices for consumers seeking cell phone service across the board.
Nevertheless, the deal appears to be happening, which sent S stock soaring about 17.9% following the news. Shares have been surging 3.5% for TMUS as well.
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