Sprint reportedly prepping MetroPCS counter-offer

Sprint logo
A decision could come as early as next week

MetroPCS has suddenly become very popular.

T-Mobile USA's parent company, Deutsche Telekom, announced Wednesday it plans to take a 74 percent stake in the no-contract carrier, with Metro retaining 24 percent and picking up a $1.5 billion shareholder pay day.

When the deal wraps in the first part of next year, the companies will merge into one T-Mobile entity, though retain separate customer pools.

However, a report surfaced Thursday that Sprint, the nation's third largest carrier, is considering a bid to take MetroPCS in T-Mobile's stead.

Intrigue

Three anonymous sources familiar with the situation spoke with Bloomberg Businessweek about the matter, and reportedly revealed Sprint is tabulating whether or not it can come up with a higher offer.

TechRadar contacted Sprint for verification of this report, but was told that the company doesn't comment on rumors and speculation by a company spokesperson.

However, according to Businessweek's sources, the company started mulling over a MetroPCS buyout several weeks ago - before T-Mobile went public with its deal.

A decision whether to pursue a purchase could come as early as next week, two of the sources said.

Sprint hasn't approached Metro yet about any deal, another source added.

While the T-Mobile/Metro deal limits Sprint's consolidation power, according to the Stifel Financial Corp., if either side backs out of the deal now, it would spell millions in breakup fees.

John Legere, who'll oversee the newly consolidated firm of T-Mobile and MetroPCS, said earlier this week that if T-Mobile backs out of the deal, it'll owe Metro $250 million.

Should Metro get cold feet, it will owe T-Mo $150 million.

Yet another source said Deutsche Telekom is prepared for a Sprint counter bid and would consider better terms if presented with those options.

Sprint reportedly abandoned plans in early 2012 to buy MetroPCS after its board rejected the $8 billion transaction, which included debt.

Sprint also apparently considered buying T-Mobile before a March 2011 announcement that AT&T wanted to pick up T-Mo for $39 billion. That deal fell through due to regulator hinderance.

Via Bloomberg Businessweek

Michelle Fitzsimmons

Michelle was previously a news editor at TechRadar, leading consumer tech news and reviews. Michelle is now a Content Strategist at Facebook.  A versatile, highly effective content writer and skilled editor with a keen eye for detail, Michelle is a collaborative problem solver and covered everything from smartwatches and microprocessors to VR and self-driving cars.

Latest in Phone & Communications
GlocalMe KeyTracker
When I tested this global tracker, it trounced the Apple AirTag in so many ways
Privacy Hero II
Privacy Hero II VPN Router
ThinkPhone 25 by Motorola
I reviewed the ThinkPhone 25 by Motorola and while it's not as fast as its predecessor, it's the superior phone in so many ways
FRITZ!Box 7690 WiFi 7 Router
FRITZ!Box 7690 router review
Ulefone Armor Pad 4 Ultra Thermal
Ulefone Armor Pad 4 Ultra Thermal rugged tablet review
Unihertz Tank Pad 8849
Unihertz Tank Pad 8849 rugged tablet review
Latest in News
EA Sports F1 25 promotional image featuring drivers Oscar Piastri, Carlos Sainz and Oliver Bearman.
F1 25 has been officially announced, with this year's entry marking a return for Braking Point and a 'significant overhaul' for My Team mode
Garmin clippd integration
Garmin's golf watches just got a big software integration upgrade to help you improve your game
Robert Downey Jr reveals himself as Doctor Doom to a delighted crowd at San Diego Comic-Con 2024
Marvel is currently making a major announcement about Avengers: Doomsday's cast on YouTube, and I think it's going to be a long-winded reveal
Samsung QN90F on yellow background
Samsung announces US prices for its 2025 mini-LED TV lineup, and it’s good and bad news
Nintendo Switch Lite
Forget the Nintendo Switch 2, the original Switch is getting one last hurrah in a surprise Nintendo Direct tomorrow
The Samsung Galaxy S25 Edge on display the January 22, 2025 Galaxy Unpacked event.
Samsung Galaxy S25 Edge colors seemingly revealed in new video, and there’s another sign of an imminent launch