Mobile's John Legere denies Justice Department pushback on Sprint merger
17 April, 2019, 10:27 | Author: Sammy Rose
T-Mobile stock slid nearly 4 percent.
The Journal says Justice Department antitrust staff, which is reviewing the takeover, questioned the companies' reasoning for it in a meeting this month.
T-Mobile CEO John Legere denied the Journalreport, writing on Twitter that "t$3 he premise of this story.is simply untrue".
This was a heated topic of debate at the Congressional Hearing and it seems the DOJ is concerned about the impact on current Sprint employees and the fate of their jobs, as well as the raising of service rates following the merger, which has proven to happen in similar mergers throughout Europe. DOJ spokesman Jeremy Edwards declined to comment on an ongoing investigation.
T-Mobile and Sprint did not immediately answer messages.
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The T-Mobile/Sprint deal would reduce the number of nationwide mobile carriers from four to three, limiting customer choice across the United States.
Sprint and T-Mobiles argument for the merger is that the two carriers need each other to push forward with 5G and with Sprints accumulating debt, it needs T-Mobile so the carrier doesnt go bankrupt.
"T-Mobile and Sprint could offer concessions, such as assets sales, to address the government's concerns", the Journal wrote. But the two carriers are said to remain in talks with government officials and regulators.
The Obama administration rebuffed the companies' earlier effort to merge, as well as an attempted deal between AT&T and T-Mobile, on concerns such deals would hurt competition in the wireless industry.
The Federal Communications Commission is also reviewing the deal and hasn't said whether it will approve it. The officials are also reportedly prepared to sue T-Mobile and Sprint if federal officials don't help them to challenge the proposed merger. It's unclear when the agencies might make a decision, but the DOJ is likely many weeks away.
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