Sprint, T-Mobile merger ‘unlikely’ to be approved by DOJ: report

Things aren’t looking good for the big merger between Sprint and T-Mobile.

The Department of Justice antitrust enforcement has informed Sprint and T-Mobile that the merger is “unlikely” to receive approval, according to the Wall Street Journal. 

Speaking to sources familiar with the merger, the report states that the $26 billion deal is concerns from the Justice Department’s antitrust division over threats the merger poses to competition. Sprint and T-Mobile are the third and fourth biggest mobile carriers in the country.

Further complicating matters, several U.S. states are considering taking legal action against the two companies if the DOJ decides not to challenge the merger.

Sprint and T-Mobile executives are very publicly denying the Wall Street Journal’s report.

“This @WSJ article is not accurate,” Sprint Executive Chairman Marcel Calure. “We continue to have discussions with regulators about our proposed merger with @TMobile. That process is ongoing and we have no further comment.”

“The premise of this story, as summarized in the first paragraph, is simply untrue,” T-Mobile CEO John Legere to his over 6 million Twitter followers. “Out of respect for the process, we have no further comment. This continues to be our policy since we announced our merger last year.”

Following previous attempts, Sprint and T-Mobile finally came to an agreement and announced its multibillion dollar in April of last year. One of the main reasons for the merger cited by the two companies is the upcoming 5G rollouts. In the U.S., Sprint and T-Mobile are woefully behind in the race to 5G when compared to AT&T and Verizon. Looking at 5G rollouts , the two mobile carriers are in an even worse predicament. 

Still, the merger isn’t dead yet. The Wall Street Journal’s report does note that government officials can still approve of the deal, regardless of staffers reservations. It’s also possible that Sprint and T-Mobile alter the deal to address the Justice Department’s concerns.