T-Mobile (NASDAQ: TMUS) and Sprint (NYSE: S) jointly said they ended talks to merge as the companies were unable to find mutually agreeable terms.
Sprint stock hit a new annual low of $5.81 this morning, and was last seen down 11.5 percent in its five day average as of close of business yesterday, after the telecom called off its merger with T-Mobile on Saturday. Masayoshi Son, CEO of Sprint parent Softbank, is confident Sprint can grow independently, but said the company would still consider a merger if its management rights are preserved.
Tower stocks on the other hand reached new highs as American Tower (NYSE:AMT) is up 5.6 percent over five days; SBA Communications (NASDAQ:SBAC) is up 6.4 percent over five days and Crown Castle’s (NYSE:CCI) five day average is up five percent. All three hit 52-week highs yesterday.
“The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders. However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile’s shareholders compared to our outstanding stand-alone performance and track record,” said T-Mobile US, Inc. President/CEO John Legere. “Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories – ultimately redefining the mobile internet as we know it. We’ve been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless. We won’t stop now.”
Sprint President/CEO and Softbank Board member Marcelo Claure said: “While we couldn’t reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth. As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries. We are determined to continue our efforts to change the wireless industry and compete fiercely. We look forward to continuing to take the fight to the duopoly and newly emerging competitors.”
November 7, 2017