Sprint Corp (NYSE:S) and T-Mobile US Inc (NASDAQ:TMUS) jointly reported that they have ceased discussions to merge as the firms were unable to come at mutually agreeable terms.
The management speaks
John Legere, the CEO and President of T-Mobile US, expressed that the prospect of merging with Sprint has been compelling for several reasons, including the prospect to create notable benefits for customers and value for investors.
However, they have known all along that an agreement with anyone will have to lead in enhanced long-term value for T-Mobile’s investors compared to their remarkable track record and stand-alone performance. In the coming period, T-Mobile will continue disrupting this segment and bringing its proven Un-carrier plan to more customers and new segments, eventually redefining the mobile Internet segment. Legere added that they have been out-growing this industry for the previous 15 quarters, offering remarkable value for shareholders, and achieving significant change across wireless.
Marcelo Claure, the President and CEO of Sprint, said that while they couldn’t reach a deal to combine their firms, they certainly identify the benefits of scale through a prospective combination. However, they have noted that it is best to progress on their own. They know they have notable assets, including their rich spectrum holdings, and are supporting significant investments in their network to ensure sustained growth.
Claure added that as convergence in the connectivity segment continues, they consider significant opportunities prevail to establish strong associations across numerous industries. They are determined to continue their initiatives to change the wireless market and compete fiercely. Sprint management look forward to continuing to combat the duopoly and newly emerging peers.
In the last trading session, the stock price of Sprint declined more than 11% to close the day at $5.90. The decline came at a share volume of 61.99 million compared to average share volume of 17.42 million.