“T-Mobile and Sprint are entering due diligence in a stock-for-stock deal that is expected to make Deutsche Telekom the controlling owner, sources tell CNBC’s David Faber,” Liz Moyer reports for CNBC.

“The exchange ratio for the stocks is expected to be at market, the sources said,” Moyer reports. “The companies are hoping to reach an agreement by the third week of October. Faber said a deal ‘seems likely’ at this point, and the two companies would be able to wring significant costs out of a combined operation.”

“But a merger of the nation’s third- and fourth-largest mobile phone carriers would raise questions about whether regulators would allow the combination or block it on antitrust grounds,” Moyer reports.

U.S. President Donald Trump and Softbank CEO Masayoshi Son in December 2016

U.S. President Donald Trump and Softbank CEO Masayoshi Son in December 2016

“T-Mobile is owned by Deutsche Telekom while Sprint is controlled by SoftBank… The two sides have had on-again, off-again talks. While T-Mobile’s CEO John Legere seems likely to lead a combined company, SoftBank’s Masayoshi Son is expected to want a say in how the company is run.”

Read more in the full article here.

“In 2014, Sprint and Japanese parent SoftBank called off takeover talks with T-Mobile and German parent Deutsche Telekom after sensing US regulators would quash any deal that reduced the field from four to three key players,” Richard Morgan reports for The New York Post. “Their motivation then, as now, was to create a stronger competitor to industry leader Verizon, with a 35.7 percent share, and AT&T, with 33.1 percent.”

“Sprint knew a merger during the Obama administration faced tough odds. AT&T announced plans to buy T-Mobile in 2011, but was blocked by the Justice Department six months later,” Morgan reports. “Acquisition lawyer Jonathan Bender of New York’s Wilk Auslander told The Post that the regulatory odds are better under the Trump administration but that it’s still ‘a tough call.'”

Read more in the full article here.

MacDailyNews Take: T-Sprint? SprinT-Mobile?

Think a T-Mobile+Sprint deal would get approved by regulators this time?