The Merger of T-Mobile and Sprint
6 Pages Posted: 8 Dec 2020
Date Written: July 30, 2019
First, this paper aims to research and document the merger between two Companies. T-Mobile [Nasdaq] and Sprint [NYSE]. This merger is an agreement between the two wireless networks to undertake and unite the two in a prevailing agreement merger into one entity. Next, this strategic alliances, which accounts for the company willingness to consolidate with another company is an opportunity they both seek. The reasons for the merger with these two companies are to gain the market shares or to expand into new business segments (DePamphilis, 2017). Hence, the primary reason for each of these company's involving themselves into this activity is to please shareholders. Hence, a merger could be a vertical move, horizontal move, market extension, product extension or a conglomerate (DePamphilis, 2017). What we know about T-Mobile (TMUS) that it was considered a downtrodden wireless carrier in 2012 trying to change the employee’s morale in 2017 as the revenue started to rise, after the announcement of a merger with Sprint (Lieberman, 2019). Thus, T-Mobile had a bad year at the start of 2012 with major disappointments in market shares dropping behind Verizon (VZ), and AT&T (T) in the number of subscriber.
Keywords: Merger, Strategic Alliance, Market Shares, Wireless Network, Shareholders
JEL Classification: G:
Suggested Citation: Suggested Citation