Sprint could disappear after merging with T-Mobile, pay $2 billion if deal falls through

John Legere

The merger between Sprint and T-Mobile could leave us with only one of the two brands existing. Who will it be? According to CNBC’s David Faber, T-Mobile and its name will be left standing. The Sprint brand, however, would disappear with John Legere’s beast leading the way. In fact, Faber confirmed a that John Legere would remain in charge of the merged company. Sprint CEO Dan Hesse has already made it clear he has no problem fading away. The rising success of T-Mobile would be the reason for sticking around. Within the last few years, Sprint has gained negative press for its poor network and high costs. T-Mobile, as we all know, is all about calling out competitors and serving consumers with great deals.

The other part to David Faber’s report is that Sprint will be hammered with writing a massive check if the merger falls apart. The carrier would have to pay T-Mobile $2 billion if government regulators get in the way of its merger. That money will not be going to the government, that money is heading over to T-Mobile. The merger would likely be official sometime this summer, likely July or August, if everything is successful. Sprint also has to handle its sponsorships, especially the existing one with NASCAR since it has a place in a series name. T-Mobile taking over that sponsorship does not seem likely as it already has a pretty good mainstay with the NBA, although expanding its sports exposure could be valuable.

No matter what happens, it looks like John Legere will be a winner.

Source: CNBC (video)
Via: FierceWireless

About the Author: Justin Herrick

Born and raised in New Jersey, Justin is a graduate of Fairleigh Dickinson University where he studied marketing with a focus on digital marketing. He's very talkative and enjoys discussing anything from technology and sports to video games and television. As for Justin's current device rotation, he carries around the Google Pixel and Nexus 9. In the rare case that his phone or tablet is not in his hand, he is either flicking through cards on his Moto 360 (2015) or typing away on the Microsoft Surface Book. Justin is patiently waiting for the day that Google replicates the Galaxy Nexus with modern day specifications.

  • cef1000

    If they merge I’m gone. Last merger sprint did was Nextel and Sprint has been a disaster ever since. T-mob is already showing serious cracks in service since they started the 4glte rollout which has gotten worse with the overwhelming influx of new customers straining their backend before it’s even built out. They need to focus on their infrastructure build out improving coverage and service.

    • jcauseyfd

      Spot on regarding the merger between Nextel and Sprint. We were on Nextel, then a combination of the two. When Sprint started decommissioning the Nextel infrastructure, things took a nosedive. Unfortunately, T-Mobile is pretty much non-existent where I am, so this merger gives me no hope. I’ve already started transitioning my family off Sprint and see no reason to put a hold on that.

    • UMA_Fan

      You didn’t read the article did you? Sprint isn’t taking over anything.