T-Mobile–Sprint deal wins Justice Department approval; both stocks surge

The Department of Justice on Friday officially approved T-Mobile US Inc.‘s merger with Sprint Corp. , provided that the wireless carriers divest assets to Dish Network Corp. . Dish will be purchasing spectrum and prepaid wireless brands from the merging companies and it will have the ability to access the new T-Mobile network for seven years while it builds its own. Assistant Attorney General Makan Delrahim of the DOJ‘s antitrust division said that the deal is "expanding output significantly by ensuring that large amounts of currently unused or underused spectrum are made available to American consumers" while giving Dish "the assets and transitional services required to become a facilities-based mobile network operator." States attorneys general have sued to block the merger, however, arguing that it is anticompetitive. Sprint shares are up 6.2% in Friday trading, while T-Mobile shares are up 3.4% and Dish‘s stock is up 1%. T-Mobile‘s rally has the stock at a new all-time intraday high, surpassing the prior high set in July 2007.

Leave a Reply

Your email address will not be published. Required fields are marked *

*