Sprint and T-Mobile have settled on the terms of a $32 billion deal that would further reshape the telecommunications industry, according to a person briefed on the matter.
Both sides have agreed on terms that would see Sprint, which is majority-owned by Japan’s Softbank, acquire Bellevue-based T-Mobile US, creating a stronger rival to the nation’s two largest wireless phone providers, Verizon and AT&T.
Sprint would pay about $40 a share in cash and stock for T-Mobile, about a 17 percent premium to Wednesday’s price, according to the preliminary agreement.
After the deal, Deutsche Telekom, the majority owner of T-Mobile, would own about 20 percent of the merged entity. Deutsche Telekom now owns about 67 percent of T-Mobile
- Expect traffic delays when Obama visits Seattle Friday afternoon
- Huskies upset USC 17-12 and beat Steve Sarkisian, their former coach
- Win over USC puts UW’s coaching upgrade (Chris Petersen over Steve Sarkisian) on full display
- Lloyd McClendon will not return as Mariners' manager
- Even in death, 'Up' house owner Edith Macefield remains a mystery
Most Read Stories
The deal is sure to face regulatory scrutiny, and the early terms would include a breakup fee of more than $1 billion that Sprint would pay T-Mobile if the deal is not completed.
An announcement is still a ways off. The two sides have not conducted due diligence on one another, drafted a definitive agreement or arranged financing. A deal could be announced in July but could come as late as August.
Bill White, a spokesman for Sprint, and Anne Marshall, a spokeswoman for T-Mobile, didn’t immediately respond to messages seeking comment.