Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Mr. Masayoshi Son, President of SoftBank Corp. announced in a television interview that he would like to acquire T-Mobile US Inc. through his Sprint Corp. and intends start a “massive price war” in case the deal is approved by U.S. regulators. SoftBanks President also revealed that he would like implement infrastructure improvements in order to offer faster Internet access in the U.S.

As reported by Bloomberg, he said in the interview: “The mobile Internet, the Internet highway, is the most important infrastructure for the 21st century.” According to a person with knowledge of the plans, Sprints Chairman has been willing to purchase T-Mobile US Inc. since the acquisition of Sprint Corp.

Mr. Son confirmed that he is interested in combining the third and fourth-largest wireless companies in the U.S. into one new entity, after purchasing the control over the third-largest wireless carrier in 2014. He explained that such a merger would provide him with a head-start in the rivalry with both Verizon Communications Inc. and AT&T Inc.

Sprint Corp.s Chairman said in the interview, which was cited by Bloomberg: “We need a certain scale, but once we have enough scale to have a level fight, OK. It’s a three-heavyweight fight. If I can have a real fight, I go in more massive price war, a technology war.”

As reported by the Wall Street Journal, Mr. Son said: “We would like to make the deal happen, but there are steps and details that we have to work out.” He also said that Sprint Corp. has “not yet” made a bid for T-Mobile US Inc. but he assured Charlie Rose, who interviewed him, in his intentions to “give a shot”. Mr. Son, however, remains “concerned an acquisition wont be approved” by the countrys regulators, according to Naoki Fujiwara, who is the Chief Fund Manager of Shinkin Asset Management Co.

As reported by the the Wall Street Journal, U.S. regulators have said they are pleased with the existing balance of four national operators.

T-Mobile US Inc. rose by 0.58% on Monday in New York to $30.97, marking a one-year change of +124.12% and a market value of $24.85 billion. According to CNN Money, the 17 analysts offering 12-month price forecasts for T-Mobile US Inc. have a median target of $35.00, with a high estimate of $42.00 and a low estimate of $12.00. The median estimate represents a +13.01% increase from the previous close.

Sprint Corp. jumped by 0.93% on Monday to settle at $8.71, raising the companys market capitalization to $34.28 billion. According to CNN Money, the 19 analysts offering 12-month price forecasts for Sprint Corp. have a median target of $7.50, with a high estimate of $10.50 and a low estimate of $5.00. The median estimate represents a -13.89% decrease from the previous close.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Commodities trading outlook: gold, silver and copper futuresCommodities trading outlook: gold, silver and copper futures Gold and silver futures were higher during midday trade in Europe today, as the US and EU stepped up sanctions against Russia. Meanwhile, copper futures were lower.Gold futures for delivery in August traded for $1 304.9 per troy ounce at […]
  • FTSE 100 rises ahead of interest rate decisionsFTSE 100 rises ahead of interest rate decisions Britains headline equity index rose to a 3-1/2-month high on Wednesday, led by Ashtead Group, with investors eyeing tomorrows interest rate decisions by the ECB and BoE which stand a considerable chance of deviating from expectations.FTSE […]
  • Forex Market: GBP/USD daily trading forecastForex Market: GBP/USD daily trading forecast Yesterday’s trade saw GBP/USD within the range of 1.5245-1.5347. The pair closed at 1.5261, falling 0.23% on a daily basis, while extending losses from Tuesday. The daily low has been the lowest level since October 14th, when the pair […]
  • Mitsui, Northland to establish 1 GW wind farm in TaiwanMitsui, Northland to establish 1 GW wind farm in Taiwan Mitsui & Co and Northland Power Inc have finalized a plan to establish a 1 gigawatt offshore wind farm in Taiwan, which is expected to cost JPY 960 billion ($6.5 billion).The project, which is 60% owned by Northland and 40% owned […]
  • GBP/USD hits the strongest level since May 2011 on BBA data, Mark Carney’s commentsGBP/USD hits the strongest level since May 2011 on BBA data, Mark Carney’s comments The pound traded little changed against the US dollar, after hitting the strongest level since May 2011 as a report by the British Bankers Association (BBA) showed UK mortgage approvals increased to a six-year high in December.Having hit a […]
  • Intel Stock Experiences 4.2% Dip to $22.74 Despite Early GainsIntel Stock Experiences 4.2% Dip to $22.74 Despite Early Gains Key momentsIntel's stock initially surged during early trading hours due to reports that Nvidia and Broadcom are still testing its 18A chip fabrication process. Investor expectations of a major deal between Intel and TSMC were […]