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The Head of the Department of Justice's antitrust department told FOX Business Tuesday that Sprint's increasingly precarious financial situation was critical to the fate of the proposed Sprint-T-Mobile merger.
The deal worth $ 26 billion is in a regulatory stalemate as officials in the antitrust division look into whether the deal will result in price increases as it would reduce the number of major suppliers wireless services. The Federal Communications Commission must also consider the merger, but the biggest obstacle to the deal is the DOJ, which examines in detail whether these transactions harm consumers.
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At the conference organized by the Milken Institute, Makan Delrahim, head of the antitrust division, told FOX Business that company officials had alerted the GM by letting them know that without this deal, the future of Sprint was clearly questioned and that it remained to be wondered if the company would be strong enough to compete effectively with wireless players such as AT & T, Verizon and its proposed merging partner, T-Mobile.
They also pointed out that by partnering with T-Mobile, Sprint's future would be assured. Without the merger, the market could still be dominated by three major players, given Sprint's weak financial position.
Delrahim has described it as "defending the failing company".
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| TMUS | T-MOBILE US INC | 73.27 | -0.33 | -0.45% |
| S | SPRINT CORP. | 5.59 | +0.06 | + 0.99% |
Defending the failing company is "a factor we consider," Delrahim told FOX Business. "Whether or not it meets the legal standards we need to consider is another story."
Delrahim confirmed to FOX Business that representatives of Sprint and T-Mobile "mentioned" Sprint's ability to survive in the increasingly competitive wireless market, especially when mobile operators are looking to develop 5-G ultra-fast technology that can create millions of jobs and hundreds of people. billions to the US economy.
When asked about Sprint's financial position in the DOJ merger review list, Delrahim said, "Well, that's certainly part of the review."
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The Sprint and T-Mobile press representatives made no immediate comment.
Sprint is considered the weakest of the four major wireless service providers. In a recent company report, the company described its financial situation as follows: "Sprint is not on the road to sustainable competition."
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