“T-Mobile and Sprint are in active talks about a merger, according to people close to the situation,” David Faber reports for CNBC. “Both companies and their parents, Deutsche Telekom and Softbank, have been in frequent conversations about a stock-for-stock merger in which T-Mobile parent Deutsche Telekom would emerge as the majority owner.”

“People close to the situation stress that negotiators are still weeks away from finalizing a deal and believe the chances of reaching an agreement are not assured. The two sides have not yet set an exchange ratio for a deal, but are currently engaged in talks to hammer out a term sheet,” Faber reports. “The biggest issue is whether any merger between the No. 3 and No. 4 wireless carriers in the nation would be approved by antitrust regulators. The risk of rejection by the Department of Justice will play an important role in the final decision made by both sides as to whether they will proceed with a deal.”

“T-Mobile and Sprint have had a seemingly endless dalliance over the years since Softbank took control of Sprint,” Faber reports. “This time, given the all-stock nature contemplated, Softbank would emerge as a large minority holder in any combination. While T-Mobile CEO John Legere is expected to lead any combination that results from a merger, Son has made it clear he wants a say in how the company is run.”

Read more in the full article here.

MacDailyNews Take: Would a stronger Big Three be preferable in terms of competition to what we have in the U.S. now?