What are the primary advantages of this merger, and what stakeholders stand to benefit from this merger. Explain your logic, preferably using some data.

Discussion: Sprint and T-Mobile

 

In April 2020, T-Mobile and Sprint, the 3rd and 4th largest U.S. wireless phone service providers (after AT&T and Verizon), merged. Online you can find many articles about this merger, the reasons it has received so much scrutiny, and the suggested costs and benefits. Do some research to get specific facts and data that you can use in making arguments for the following questions.

  1. What are the primary advantages of this merger, and what stakeholders stand to benefit from this merger. Explain your logic, preferably using some data.
  2. What are the primary disadvantages of this merger, and what stakeholders stand to be hurt by this merger. Explain your logic, preferably using some data.
  3. How will this merger impact the owners of the two companies, most importantly SoftBank and Deutsche Telekom?
  4. Practically speaking, this merger was an acquisition of Sprint by T-Mobile. Given that Sprint was not doing very well financially, why would T-Mobile make this acquisition?

Start your original post with either the number 1, 2, 3, or 4 and a 3-10 word description of your thinking, which correspond to a question from those above. Please, just focus on one question in your original thread. The syllabus provides further details on what is expected in discussions, and the grading criteria.

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