Crossing Wires
Sprint and T-Mobile Need to Get Together Already
It's a foregone conclusion at this point -- and both sides have something to gain.
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In the least surprising news of the day (or perhaps ever), T-Mobile US Inc. and Sprint Corp. are reportedly in "active" merger talks. Again. This could finally be the real deal. But some investors may be saying, hold up -- why does T-Mobile even want this thing?
It's a fair question. Sprint isn't exactly a hot commodity, what with its $33 billion of net debt (same as its equity value) and cash-burning parties. Meanwhile, T-Mobile is on top of its game, proudly waving its magenta flag.1505833337121 But there's a very simple answer: Sprint subscribers are low-hanging fruit for T-Mobile.