German telecom Deutsche Telekom is seeking to renegotiate the merger deal between its US subsidiary, T-Mobile, and rival Sprint, due to the latter’s underwhelming financial performance, according to The Financial Times.
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This follows on the heels of the decision earlier this week in the protracted antitrust lawsuit against the proposed merger, which ruled in favor of T-Mobile and cleared the merger to move past one of its final hurdles.
For context, since the merger’s announcement in April 2018, Sprint has seen declines in both revenue and subscribers — at the end of Sprint’s fiscal Q3 2019 (ended December 31, 2019), the company reported subscribers losses for six straight quarters and posted the company’s fifth consecutive quarterly revenue net loss.
Despite these disappointing financial outcomes, Sprint’s controlling shareholder SoftBank opposes a renegotiation, which could risk drawing out the almost two-year-long merger process even further and negatively affect T-Mobile.
A further extension of the merger timeline could hurt T-Mobile’s growth plans,