Rejecting a claim by a group of states that said the deal would violate antitrust laws and raise prices, a federal judge on Tuesday approved wireless carrier T-Mobile US Inc’s merger with Sprint Corp.
During a two-week trial in December, T-Mobile and Sprint argued the merger will better equip the new company to compete with top players Verizon Communications Inc and AT&T Inc, creating a more efficient company with low prices and faster internet speeds.
The states, led by California and New York, had said the deal would reduce competition, leading to higher prices.
The decision by U.S. District Court Judge Victor Marrero clears the path for the deal, which already has federal approval and was originally valued at $26 billion.
New York’s attorney general said the state is considering an appeal; California’s attorney general said that state is “prepared to fight.”
MacDailyNews Note: T-Mobile and Sprint today announced that the companies are now taking final steps to complete their merger to create the New T-Mobile.
“Today was a huge victory for this merger … and now we are FINALLY able to focus on the last steps to get this merger done! We want to thank the Court for its thorough review of the facts we presented in our case. We’ve said it all along: the New T-Mobile will be a supercharged Un-carrier that is great for consumers and great for competition. The broad and deep 5G network that only our combined companies will be able to bring to life is going to change wireless … and beyond. Look out Dumb and Dumber and Big Cable – we are coming for you … and you haven’t seen anything yet!” said John Legere, Chief Executive Officer of T-Mobile, in a statement.
“This is a BIG win and a BIG day for the New T-Mobile! Now we can get to work finishing what we set out to do – bringing a new standard for value, speed, coverage, quality and customer service to U.S. consumers everywhere and TRULY changing wireless for good. Now we’re laser-focused on finishing the few open items that remain but our eye is on the prize: finally bringing this long-awaited merger and all the goodness it will deliver to a close as early as April 1, 2020. We are SO ready to bring the New T-Mobile to life!” said Mike Sievert, COO and President of T-Mobile, in a statement.
“Judge Marrero’s decision validates our view that this merger is in the best interests of the U.S. economy and American consumers,” said Sprint Executive Chairman Marcelo Claure in a statement. “Today brings us a big step closer to creating a combined company that will provide nationwide 5G, lower costs, and a high-performing network that will invigorate competition to the benefit of all mobile wireless and in-home broadband consumers. With the support of federal regulators and now this Court, we will focus on quickly completing the few remaining necessary steps to close this transaction. I am proud of my Sprint team’s dedication, passion and resilience throughout the merger review process, and we are ready to make the vision of a New T-Mobile a reality.”