Sprint merger is in danger of being rejected by DOJ

If you believe T-Mobile, the Sprint merger is completely, 100% necessary for it to field a 5G network that is competitive with Verizon and AT&T. T-Mobile stock slid nearly 4 percent.

Sprint shares "are trading at a roughly 20 percent discount to the price implied by the all-stock deal, signaling Wall Street doubts about the combination's chances", the report also said.

We've been talking about the T-Mobile and Sprint merger for a while now, and about a year since it was initially announced, it looks like it could be in trouble.

The Journal said that Justice Department antitrust personnel, who are reviewing the takeover, questioned the companies' reasoning for it in a meeting this month. The FCC also has regulatory oversight of the deal but has not made any waves yet.

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The agreement to combine the carriers, struck in April 2018, was approved by both companies' shareholders in October and has received national security clearance, but still needs approval from the Justice Department and FCC. The Justice Department declined to comment. The DOJ generally doesn't comment publicly on ongoing merger reviews.

To alleviate concerns, it is reported that T-Mobile and Sprint could could offer concessions, such as assets sales.

The Obama administration rebuffed the companies' earlier effort to merge, as well as an attempted deal between AT&T and T-Mobile, on concerns such deals would hurt competition in the wireless industry.

T-Mobile unveiled an in-home Internet service last month, while claiming that it can only expand it significantly if the government approves the merger. But the companies' own previous statements about their 5G plans contradicted those claims, and government officials don't appear to be impressed by the 5G argument. It's unclear when the agencies might make a decision, but the DOJ is likely many weeks away.

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