The merger of T-Mobile and Splint could be almost falling through.
According to WSJ, the lawyers of the justice department informed the two companies that their mergers would unlike go through. The final word of whether a merger will go through or not entirely depends on the agency leadership and not the staff. Hence T-Mobile and splint could see the merger happening, but a staff recommendation of its unlikely hood to succeed is not a positive sign at all.
Sprint and T-Mobile had earlier tried to merge the two companies, but the deal did not go through.
T-Mobile had also tried to merge with T&AT, but the Obama administration rejected it.
John Legere who is T-Mobile CEO dismissed the wall street journal on twitter and said that those were just speculations and said that the company had no further comments on the issue.
While announcing the deal to merge the two companies Sprint and T-Mobile said that the move would make the two companies competitive and enable them to use more advanced technologies and also invest in super-fast 5G service.
In a filing this week to the FCC, Sprint said that it seriously needed the merger with T-Money to remain competitive. The company said that it was in a hard situation which was only getting worse by the day. It was losing its customers which in return lead to lower revenue and cash flow. Due to lack of enough income the company is not able to invest in its network and pay of its debt.
When reached for comments sprint did not answer back.