Wednesday, June 18, 2014

Will a Merger With T-Mobile Reward Sprint Shareholders?


With rumors and speculation swirling around a potential merger between Sprint (NYSE: S  ) and T-Mobile US (NYSE: TMUS  ) , a big question is whether such a move would reward shareholders. In theory, consolidation in the wireless space should eliminate the aggressive pricing in the sector and benefit the remaining companies.

Based on the recent consolidation to three major legacy airlines, the airline sector is stronger and more profitable but not all of the players are performing the same. In addition, the consolidation in the wireless sector would leave AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) as dominant players with the new Sprint a very distant third.


Read the full article here.


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