Now that the boards of Deutsche Telekom and MetroPCS have agreed to a merger between the nation's fourth and fifth largest carriers, number three wants to go number two all over their plans. Sprint, which last year was prepared to purchase MetroPCS for $8 billion until the mobile operator's board put the kibosh on CEO Dan Hesse's plan, is rumored to be considering a higher bid for the upstart pre-paid carrier.
Sprint CEO Dan Hesse may want another shot at MetroPCS
A person familiar with the situation says that the Board of Deutsche Telekom is prepared to receive a higher bid from Sprint. The deal that both T-Mobile and MetroPCS agreed to allows the latter to back out of the deal after paying a $150 million break-up fee. T-Mobile can back out by paying a $250 million break-up fee.
If the MetroPCS deal with T-Mobile closes. the combined entity would have revenue of $24.8 billion and 42.5 million subscribers. Even though that would be fewer subscribers and revenue than Sprint, some analysts feel that a T-Mobile-MetroPCS combination could still put Sprint at such a disadvantage that it would make sense for the carrier to try to disrupt the deal with a bid of its own. A recent rally in Sprint's stock allows the carrier to use its shares as currency for a potential deal. Since the summer, Sprint's stock has risen nearly 50%. Metro PCS currently has a stock market value of $4.61 billion while Sprint's market cap is $15.3 billion.
Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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