TMUS Feb 2020 78.000 put

OPR - OPR Delayed Price. Currency in USD
0.1000
0.0000 (0.00%)
As of 10:22AM EST. Market open.
Stock chart is not supported by your current browser
Previous Close0.1000
Open0.1000
Bid0.0000
Ask4.8000
Strike78.00
Expire Date2020-02-14
Day's Range0.1000 - 0.1000
Contract RangeN/A
Volume15
Open Interest26
  • Report: Sprint merger offers stability for JoCo office market
    American City Business Journals

    Report: Sprint merger offers stability for JoCo office market

    Before a recent ruling in favor the T-Mobile merger, brokers fretted over concerns about what would happen to Sprint’s already diminished presence in Overland Park.

  • New York drops fight against T-Mobile-Sprint merger
    Reuters

    New York drops fight against T-Mobile-Sprint merger

    New York on Sunday dropped its fight against the $40 billion merger of U.S. wireless carriers T-Mobile US Inc and Sprint Corp, saying the state would not appeal a judge's approval of the deal. New York Attorney General Letitia James said her office would end the court challenge to the 2018 merger agreement between the third- and fourth-largest U.S. wireless carriers. New York, California and other states had challenged it on antitrust grounds, saying it would drive up prices for consumers.

  • New York won’t challenge judge’s approval of T-Mobile-Sprint merger
    MarketWatch

    New York won’t challenge judge’s approval of T-Mobile-Sprint merger

    New York’s attorney general said Sunday the state will not appeal a judge’s decision approving the merger of T-Mobile and Sprint.

  • Barrons.com

    Wall Street Bets on a Cut in the T-Mobile/Sprint Deal Price

    Sprint closed today at a discount of $1.09, or 11%, to the value of T-Mobile’s original offer. This suggests a 5% to 7% cut in the Sprint deal price may be coming. Will SoftBank play along?

  • Financial Times

    New York decides against T-Mobile-Sprint merger appeal

    “New York has decided not to move forward with an appeal in this case,” state attorney-general Letitia James said in a statement on Sunday. More than a dozen Democratic states led by New York and California sued to stop the merger on the grounds that it would lead to higher prices and lower service quality for consumers.

  • Here's why Big Tech is winning the war against the government
    Yahoo Finance

    Here's why Big Tech is winning the war against the government

    The U.S. government has never been a model of consistency but lately the inconsistencies—foolish and otherwise—emerging from Washington directed at the tech industry have become truly mind-blowing.

  • Barrons.com

    Sprint Bonds Moved the High-Yield Market. That Hardly Ever Happens.

    The telecommunications company’s debt soared early this week on the news that it will be allowed to merge with its peer T-Mobile US.

  • Moody's

    Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC -- Moody's places Sprint Spectrum Co.'s Senior Secured Notes on Review for Upgrade

    Moody's Investors Service ("Moody's") places three classes of notes sponsored by Sprint Corporation (Sprint, B2 review for upgrade) on review for upgrade. The Series 2016-1 Class A-1 notes and 2018-1 Class A-1 and Class A-2 notes were issued under the same master trust and are backed by a single 30-year lease to Sprint Communications, Inc. (SCI, B1/B3 review for upgrade) for a portfolio of wireless spectrum licenses and are further enhanced by a senior guarantee from Sprint and certain of its operating subsidiaries.

  • Dealmakers, Beware: A ‘52-Headed Monster’ Is Watching
    Bloomberg

    Dealmakers, Beware: A ‘52-Headed Monster’ Is Watching

    (Bloomberg Opinion) -- The anything-goes world of megamergers under President Donald Trump has encountered new resistance. More than a dozen U.S. states sued to stop T-Mobile US Inc.’s takeover of Sprint Corp. and failed when a judge ruled against them this week. But their unusual effort to step in as de facto antitrust regulators in the era of a lax Trump administration — and the fact that the case was seen as such a close call — is sure to unnerve other dealmakers who may be contemplating their own controversial mergers and acquisitions. The Department of Justice and the Federal Communications Commission are the main regulatory bodies that deal-hungry telecommunications CEOs must appease to get their transactions over the antitrust hurdle. (Other industries may have to answer to the Federal Trade Commission.) But the states have emerged as one more powerful group to worry about. In the T-Mobile-Sprint matter, state attorneys general from around the country, led by New York and California, demonstrated a willingness to go beyond the convention of securing one-off concessions for their own constituents when a deal raises concerns. Instead, if regulators drop the ball, the states are prepared to team up and take companies to court, with proceedings that could potentially stretch on for months — and time is money. With the DOJ, FCC and now the states, it’s become “a three-headed monster,” said John Stephens, AT&T Inc.’s chief financial officer. “Or maybe a 52-headed monster, I should say,” he added, speaking during a post-earnings phone interview on Jan. 29, before the Sprint ruling.District Judge Victor Marrero ultimately ruled in favor of the wireless carriers this week, rejecting the states’ arguments that the merger will lead to higher prices for consumers and that wireless newbie Dish Network Corp. won’t become a viable competitor capable of replacing Sprint. The deal, which the companies expect to close by April, will shrink the number of U.S. national wireless carriers from four to three, a level of market concentration that was taboo under previous administrations.On the one hand, the ruling has the potential to open the floodgates for other megamergers that traditionally would have been considered off-limits. To use a hypohetical, take Dish and AT&T’s DirecTV: They compete in providing satellite-TV service to U.S. households, and both parties have said in the past that there would, in theory, be benefits to putting the businesses together, if not for the regulatory hurdles. (AT&T executives have since said they aren’t planning to sell DirecTV.) But just as T-Mobile and Sprint successfully argued that their industry is different now thanks to changing technologies, satellite providers could make that claim, too. Even so, the states’ persistence in the Sprint matter may make some would-be dealmakers think twice about how far they’re willing to go to get a transaction across the finish line. Keeping with the Dish-DirecTV example, those are precisely the kinds of well-known brands that the states could go after in a merger fight. And if it weren’t for the states, T-Mobile and Sprint would have had the major regulatory approvals they needed wrapped up months ago; FCC Chairman Ajit Pai gave his blessing back in May, and the Justice Department cleared the deal in July. As the battle with the states dragged on, Sprint’s market value shrank, its business deteriorated, and now T-Mobile wants to renegotiate the price it pays Sprint’s shareholders. In a bit of irony, the Federal Trade Commission said Tuesday that it’s looking into whether past purchases by U.S. technology giants such as Amazon.com Inc., Google and Facebook Inc. that slipped by regulators’ radars were, in fact, anticompetitive. The FTC’s announcement — part of the ongoing scrutiny of the power wielded by Big Tech — came hours after the ruling for T-Mobile’s acquisition of Sprint, one of the most anticompetitive megadeals in the tech sphere.Letitia James, the New York attorney general who led the T-Mobile-Sprint opposition, said in response to Tuesday’s court decision that while she disagrees with the outcome, the states “will continue to fight the kind of consumer-harming megamergers our antitrust laws were designed to prevent.” Think she means it?To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Huawei Hit With Racketeering Charge in Expanding U.S. Case
    Bloomberg

    Huawei Hit With Racketeering Charge in Expanding U.S. Case

    (Bloomberg) -- The U.S. raised the stakes in its battle with Huawei Technologies Co., using a law historically associated with prosecuting mafia figures to claim the Chinese company engaged in decades of intellectual property theft.Huawei, the world’s largest maker of telecommunications equipment, and Chief Financial Officer Meng Wanzhou had already faced criminal charges. The fresh allegations, announced Thursday, up the ante by including racketeering conspiracy, increasing the potential punishment. They come as the global battle for supremacy in fifth-generation wireless technology, or 5G, is joined.Huawei broke the law “to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage,” the Justice Department said in a statement. The company even launched a bonus program to reward employees who got their hands on confidential information from competitors, prosecutors said.The new charges depict a company that won international standing by stealing trade secrets, evading U.S sanctions and lying to authorities. They are likely to increase tensions between Beijing and Washington, which has accused Huawei of spying for the Chinese government, even as Huawei won a brief reprieve from a proposed ban on buying parts.The indictment doesn’t name the businesses from which Huawei allegedly stole intellectual property, but details of the allegations match descriptions of companies including Cisco Systems Inc., Motorola Inc. and Cnex Labs Inc.“The indictment paints a damning portrait of an illegitimate organization that lacks any regard for the law,” Senator Richard Burr of North Carolina, the Republican chairman of the Intelligence Committee, and Senator Mark Warner of Virginia, the panel’s Democratic vice-chairman, said in an emailed statement. “Intellectual property theft, corporate sabotage and market manipulation are part of Huawei’s core ethos and reflected in every aspect of how it conducts business.”Huawei doesn’t “abide by Western business practices,” Rob Spalding, a Washington-based technology and security expert at the Hudson Institute who served on the National Security Council, said in an email. “Which is why many U.S. companies are no longer competitive in the global marketplace.”Read More: Why 5G Mobile Arrives With a Subplot of EspionageHuawei, in turn, has accused the U.S. of orchestrating a campaign to intimidate its employees and launching cyberattacks to infiltrate its internal network. China’s Ministry of Foreign Affairs has urged the U.S to “stop unreasonably targeting Huawei and other Chinese enterprises.”The new indictment “is part of the Justice Department’s attempt to irrevocably damage Huawei’s reputation and its business for reasons related to competition rather than law enforcement,” a representative of the company said Thursday. “These new charges are without merit and are based largely on recycled civil disputes” from the last 20 years “that have been previously settled, litigated and, in some cases, rejected by federal judges and juries.”Huawei was previously accused of violating U.S. sanctions against Iran and North Korea. Meng, the CFO, was charged with fraud last year, with the case rippling into Canada, where she is currently fighting extradition to the U.S. Meng’s lawyers have argued in court that their client did nothing wrong.The U.S. said Huawei stole trade secrets, including copyrighted works, source code and user manuals for internet routers, to “grow and operate” its business. The company swiped antenna and robot testing technology, prosecutors said.Then, they said, it doubled down.“When confronted with evidence of wrongdoing, the defendants allegedly made repeated misstatements to U.S. officials, including FBI agents and representatives from the U.S. House Permanent Select Committee on Intelligence, regarding their efforts to misappropriate trade secrets,” they said.Read More: U.S. Ramps Up Huawei Fight With Iran, Trade-Secret ChargesThe U.S. dates the thefts to 2002. But the government has also linked the 2016 alleged theft of a computer chip from a California tech company for Huawei with the latest charges.Bo Mao, a Xiamen University professor, was charged in September with stealing trade secrets. His lawyers said in a court filing Thursday that the prosecution is related to the Huawei case.In the new indictment, the government is wielding some prior allegations of wrongdoing, like Huawei’s alleged theft of a phone-testing robot developed by T-Mobile US Inc., to build a more muscular case. The U.S. alleged that a Huawei engineer secretly took photos of T-Mobile’s robot, Tappy, took measurements of parts and even stole a piece of it. When T-Mobile threatened to sue, the U.S. said, Huawei blamed “rogue actors” within the company.Intellectual property theft “explains a lot of Huawei’s success,” said Jim Lewis, of the Technology Policy Program at the Center for Strategic and International Studies in Washington. “Huawei is the poster child for China’s commercial spying.”The case is U.S. v. Huawei Technologies Co., 18-cr-457, U.S. District Court, Eastern District of New York (Brooklyn).Read MoreHuawei Pleads Not Guilty to Bank Fraud Charges in New YorkU.S. Accuses Huawei of Trade-Secret Theft, Defrauding BanksProsecutors Say Government Used FISA to Watch HuaweiU.S. Charges Chinese Professor Accused of Theft to Help Huawei(Updates with Bo Mao case)\--With assistance from Bob Van Voris and Natalie Obiko Pearson.To contact the reporters on this story: Patricia Hurtado in Federal Court in Manhattan at pathurtado@bloomberg.net;Alyza Sebenius in Washington at asebenius@bloomberg.net;Todd Shields in Washington at tshields3@bloomberg.netTo contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Joe Schneider, Peter BlumbergFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Sprint-T-Mobile Merger: Creating Long-Term Shareholder Value
    GuruFocus.com

    Sprint-T-Mobile Merger: Creating Long-Term Shareholder Value

    Sprint shares skyrocket on T-Mobile merger approval Continue reading...

  • How Done Is the Sprint Deal?
    Bloomberg

    How Done Is the Sprint Deal?

    (Bloomberg Opinion) -- Is Sprint Corp. a duck or a rabbit?Bear with us. Earlier this week, SoftBank Group Corp. founder Masayoshi Son showed investors a bemusing slide with an ambiguous image of a duck and rabbit. If you look at the picture from the right, you see a different critter than the view from the left.In his characteristically gnomic fashion, he was trying to suggest that there were two ways of evaluating SoftBank, and investors were doing so from the wrong perspective. But the analogy could also hold true for Sprint, the U.S. carrier in which SoftBank is the biggest shareholder, and whose planned merger with rival T-Mobile US Inc. finally secured the regulatory green light on Tuesday.When it was agreed back in April 2018, the all-stock deal gave Sprint an equity value of $27 billion. Since then, the two firms’ trajectories have diverged. Prior to Tuesday’s decision, T-Mobile stock had gained 31%, while Sprint had fallen 26%. Because Sprint shareholders are set to get T-Mobile shares in exchange for their existing stock, the value of the deal had therefore climbed to $36 billion, while the market only valued Sprint at $20 billion.So you can see why Deutsche Telekom AG, which owns 63% of T-Mobile, is now seeking to renegotiate the terms of the deal, whose existing terms lapsed in November. It looks like it might now be overpaying, so Tim Hoettges, the German firm’s CEO, has a fiduciary duty to his shareholders to at least give it a try.Here’s the metaphorical duck. Son is more vulnerable than he might have been just a week ago. That’s because the activist investor Elliott Management Corp. has built a stake in SoftBank, seeking governance improvements and a $20 billion buyback. SoftBank is meanwhile trying to find the capital for its new, reduced Vision Fund, the follow-up to the $100 billion pot of venture capital cash that Son used to make outsize bets on Uber Technologies Inc., WeWork parent We Co. and some 80 other firms over the past three years. The deconsolidation of Sprint reduces its debt exposure, while selling the remaining stake could free up capital to invest in the new fund or buybacks. The current deal terms value its stake at about $30 billion.What’s more, Sprint needs the merger more than T-Mobile. The declining share price has been driven by lackluster earnings and falling subscriber numbers. In the almost two years since the deal was agreed, Sprint’s number of subscribers has fallen by 460,000 to 54 million at the end of December. T-Mobile has meanwhile added 12 million customers for a total of 86 million.Now for the rabbit. A major renegotiation only becomes realistic if Deutsche Telekom and T-Mobile are prepared to walk away from the deal. T-Mobile stock’s 13% jump after the takeover was approved on Tuesday suggests that shareholders are happy with the deal even under the current terms. It will create value by reducing the cost of new 5G networks; giving the new company more pricing power over its customers; and letting the German-controlled firm get hold of Sprint’s valuable wireless frequencies.Ultimately, the deal remains in both firms’ interests. Deutsche Telekom would probably prefer an expensive takeover to no deal at all. Were the terms to be reevaluated based on the diverging stock prices, then T-Mobile could expect a swap ratio of at least 12 Sprint shares for each of its own (assuming a $27 billion valuation), up from the 9.75 shares agreed two years ago. Is such a drastic change likely? No. But given SoftBank’s need for cash, there’s a good chance it will be open to concessions to get the deal done.To contact the authors of this story: Alex Webb at awebb25@bloomberg.netTim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Telecom Stock Roundup: T-Mobile-Sprint Merger Approval, Qualcomm's Solid Q1 & More
    Zacks

    Telecom Stock Roundup: T-Mobile-Sprint Merger Approval, Qualcomm's Solid Q1 & More

    T-Mobile (TMUS)-Sprint (S) merger approval will likely pave the way for faster 5G rollout across the country. Qualcomm (QCOM) reports solid first-quarter fiscal 2020 results driven by 5G chip strength.

  • What to Watch Thursday: Barclays, Sprint and T-Mobile, Coronavirus

    This morning, we're looking at the uptick in coronavirus cases, the American CEO of Barclays is under investigation for his ties to Jeffrey Epstein and Sprint and T-Mobile are reportedly looking to renegotiate ...

  • Moody's

    Deutsche Telekom International Finance B.V. -- Moody's affirms DT's ratings following approval of TMUS/Sprint merger; outlook negative

    Moody's Investors Service, ("Moody's") has today affirmed the Baa1 senior unsecured rating and (P)Baa1 MTN program ratings of Deutsche Telekom AG (DT) and Deutsche Telekom International Finance B.V. Concurrently, Moody's has affirmed DT's Prime-2 (P-2) commercial paper rating. A full list of affected ratings can be found at the end of this Press Release.

  • T-Mobile Parent Deutsche Telekom Seeks New Terms for Sprint Deal
    Bloomberg

    T-Mobile Parent Deutsche Telekom Seeks New Terms for Sprint Deal

    (Bloomberg) -- Deutsche Telekom AG wants to renegotiate the terms for the sale of Sprint Corp. to its U.S. wireless unit T-Mobile US Inc., according to people familiar with the matter.The German carrier, the majority owner of T-Mobile, is seeking a lower price because Sprint’s shares have been trading below their level when the deal was proposed in 2018, said the people, who asked not to be identified as the deliberations are private.Getting one of the biggest U.S. wireless mergers ever over the finish line would be a boon to both companies. For Deutsche Telekom, the deal reduces its reliance on Europe, where carriers are struggling to grow amid fierce competition. For the chairman of Sprint owner SoftBank Group Corp., Masayoshi Son, it allows him to better focus on his technology investments and the $100 billion Vision Fund. The renegotiation talks are expected to start soon, the people said. They would follow a victory for the companies in a U.S. court this week, when a federal judge rejected a state lawsuit against the tie-up. Now the deal is in the home stretch, with only minor approvals left to secure and final financial terms to be ironed out. SoftBank declined to comment. Deutsche Telekom didn’t immediately return a call seeking comment.Deutsche Telekom shares fell 1.4% in Frankfurt as of 12:58 p.m. on Thursday. What Bloomberg Intelligence Says:Deutsche Telekom has limited leverage to renegotiate the terms of its Sprint acquisition, we think, even as the valuation of the latter jumped to $75 billion from $60 billion in 2018 under the deal terms, despite worsening operational performance. The allure of consolidation, including the acquisition of an attractive spectrum portfolio, suggests only a modest potential improvement in stock-exchange ratio.\-- Erhan Gurses, BI telecoms analystClick here for the researchFrequency ConstraintsWhile Sprint’s standalone value has dropped, SoftBank also sees itself in a good position because T-Mobile needs Sprint’s wireless frequencies or would face capacity constraints within as little as two years, one of the people said.T-Mobile’s importance for Deutsche Telekom has grown steadily in recent years and it now accounts for about half of group sales, up from around a third in 2014. T-Mobile and Sprint haven’t renewed the merger agreement since it lapsed on Nov. 1, and there have been discussions regarding several issues that T-Mobile Chief Executive Officer John Legere described as “not hostile” that month on an investor call. T-Mobile has suggested there could be new terms.The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million -- in the same league as AT&T Inc., which has 75 million subscribers, and Verizon Communications Inc., which has 114 million. T-Mobile will have more wireless frequencies than any other U.S. carrier, giving it an advantage as the industry transitions to the next generation of wireless technology, the much-faster 5G standard.Bloomberg News reported Wednesday that Sprint and SoftBank would likely have to accept a lower price than when the merger agreement was first forged in April 2018. Sprint’s monthly churn -- a closely watched measure of how many customers leave -- has risen to nearly 2%, which means roughly a quarter of its subscriber base is quitting the carrier each year.The German company is likely to leverage that to negotiate a lower price, but Sprint also has valuable radio frequency spectrum without which T-Mobile US will face serious bottlenecks, a person familiar with the matter told Bloomberg on Wednesday.The Financial Times previously reported that Deutsche Telekom is pushing to renegotiate terms of the deal, citing unidentified people familiar with the matter.(Updates with analyst comment in fifth paragraph)\--With assistance from Stefan Nicola.To contact the reporters on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net;Scott Moritz in New York at smoritz6@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Thomas Pfeiffer, Jennifer RyanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • T-Mobile Parent Is Said to Seek New Terms for Sprint Deal
    Bloomberg

    T-Mobile Parent Is Said to Seek New Terms for Sprint Deal

    (Bloomberg) -- Deutsche Telekom AG wants to renegotiate the terms for the sale of Sprint Corp. to its U.S. wireless unit T-Mobile US Inc., according to people familiar with the matter.The German carrier, the majority owner of T-Mobile, is seeking a lower price because Sprint’s shares have been trading below their level when the deal was proposed in 2018, said the people, who asked not to be identified as the deliberations are private.Getting one of the biggest U.S. wireless mergers ever over the finish line would be a boon to both companies. For Deutsche Telekom, the deal reduces its reliance on Europe, where carriers are struggling to grow amid fierce competition. For the chairman of Sprint owner SoftBank Group Corp., Masayoshi Son, it allows him to better focus on his technology investments and the $100 billion Vision Fund. The renegotiation talks are expected to start soon, the people said. They would follow a victory for the companies in a U.S. court this week, when a federal judge rejected a state lawsuit against the tie-up. Now the deal is in the home stretch, with only minor approvals left to secure and final financial terms to be ironed out. SoftBank declined to comment. Deutsche Telekom didn’t immediately return a call seeking comment.Deutsche Telekom shares fell 1.4% in Frankfurt as of 12:58 p.m. on Thursday. What Bloomberg Intelligence Says:Deutsche Telekom has limited leverage to renegotiate the terms of its Sprint acquisition, we think, even as the valuation of the latter jumped to $75 billion from $60 billion in 2018 under the deal terms, despite worsening operational performance. The allure of consolidation, including the acquisition of an attractive spectrum portfolio, suggests only a modest potential improvement in stock-exchange ratio.\-- Erhan Gurses, BI telecoms analystClick here for the researchFrequency ConstraintsWhile Sprint’s standalone value has dropped, SoftBank also sees itself in a good position because T-Mobile needs Sprint’s wireless frequencies or would face capacity constraints within as little as two years, one of the people said.T-Mobile’s importance for Deutsche Telekom has grown steadily in recent years and it now accounts for about half of group sales, up from around a third in 2014. T-Mobile and Sprint haven’t renewed the merger agreement since it lapsed on Nov. 1, and there have been discussions regarding several issues that T-Mobile Chief Executive Officer John Legere described as “not hostile” that month on an investor call. T-Mobile has suggested there could be new terms.The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million -- in the same league as AT&T Inc., which has 75 million subscribers, and Verizon Communications Inc., which has 114 million. T-Mobile will have more wireless frequencies than any other U.S. carrier, giving it an advantage as the industry transitions to the next generation of wireless technology, the much-faster 5G standard.Bloomberg News reported Wednesday that Sprint and SoftBank would likely have to accept a lower price than when the merger agreement was first forged in April 2018. Sprint’s monthly churn -- a closely watched measure of how many customers leave -- has risen to nearly 2%, which means roughly a quarter of its subscriber base is quitting the carrier each year.The German company is likely to leverage that to negotiate a lower price, but Sprint also has valuable radio frequency spectrum without which T-Mobile US will face serious bottlenecks, a person familiar with the matter told Bloomberg on Wednesday.The Financial Times previously reported that Deutsche Telekom is pushing to renegotiate terms of the deal, citing unidentified people familiar with the matter.(Updates with analyst comment in fifth paragraph)\--With assistance from Stefan Nicola.To contact the reporters on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net;Scott Moritz in New York at smoritz6@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Thomas Pfeiffer, Jennifer RyanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • TheStreet.com

    T-Mobile's Parent Reportedly Seeking to Renegotiate Terms of Sprint Deal

    Deutsche Telekom, the parent company of T-Mobile US, wants to renegotiate the terms of T-Mobile's acquisition of Sprint.

  • Financial Times

    Deutsche Telekom seeks changes to Sprint takeover terms

    The German telecoms company, which owns more than 60 per cent of T-Mobile US, wants to cut the price agreed for Sprint two years ago because the shares and performance of the company have deteriorated, said two people close to DT. The move is opposed by Sprint’s controlling shareholder, SoftBank of Japan, according to people close to the its chairman Masayoshi Son.

  • SoftBank Founder Son Says He’s Open to Working With Elliott
    Bloomberg

    SoftBank Founder Son Says He’s Open to Working With Elliott

    (Bloomberg) -- SoftBank Group Corp. founder Masayoshi Son opened the door to making at least some of the changes championed by activist investor Paul Singer, after the Japanese company reported a second quarter of losses from its startup investing.Son called Singer’s Elliott Management Corp. an “important partner” and said he is in broad agreement with the investor about SoftBank buybacks and share value. Son said he is on the side of shareholders, especially since he is the largest stockholder at the company. The two billionaires held discussions a couple weeks ago, he said.Son is adopting a more conciliatory stance just as he’s stumbling with his signature effort -- the $100 billion Vision Fund, which made him the biggest investor in technology. The fund lost money in the three months ended in December, one quarter after the meltdown at WeWork triggered a record loss for the Japanese company. On Wednesday, Son said he is no longer targeting $108 billion for a second fund and SoftBank may finance the effort on its own.“We are thankful that such a distinguished investor has joined us as a friend,” Son said at a press conference in Tokyo to discuss earnings. “We are basically in agreement on carrying out large buybacks when the finances allow it.”Elliott disclosed a stake of almost $3 billion in SoftBank this month, arguing the company’s shares are substantially undervalued compared with its assets. It has advocated for a share buyback of as much as $20 billion, along with governance changes and more transparency about its investments.The Vision Fund lost 225.1 billion yen ($2.05 billion) for the three months ended in December. SoftBank Group reported a slim operating profit of 2.6 billion yen, compared with the 344.7 billion yen average of analyst estimates.The past 12 months have been a roller coaster for Son and SoftBank investors alike. A year ago, the company unveiled a record buyback, sparking a rally that pushed shares to the highest since its dot-com peak in 2000. Uber Technologies Inc.’s disappointing public debut and the implosion of WeWork wiped out the gains over the next few months. But SoftBank surged again in the past week after Singer disclosed his stake and Son won approval to sell his Sprint Corp. to T-Mobile US Inc.SoftBank shares are up about 21% this year. They were little changed in Tokyo trading Thursday.Son focused on the positive in the presentation to shareholders and the media in Tokyo. He said the Vision Fund is on track to return to profit in the current quarter. The eight portfolio companies that are publicly trading, including Uber, Slack Technologies Inc. and Guardant Health Inc., have added $3 billion in paper profit in the current three months, he said.“At the last earnings briefing I used the words ‘I regret’ 20 times. But after a difficult winter always comes spring,” Son said. “The tide is turning,” he added, standing in front of a slide with the same words and a crashing wave.The most dramatic change in portfolio value since the quarter closed was Uber, whose shares have climbed more than 35% this year. That, Son said, means the Vision Fund’s stake is now worth $1.5 billion more than its investment, compared with $1 billion less at the end of December.The Vision Fund’s overall performance was murkier. SoftBank said the fund’s portfolio remained unchanged from the previous quarter at 88 investments. It reported a gain in valuation for 29 companies in the December quarter, while 31 saw their worth decline. The unrealized gain on the investments, or the difference between the cost at which it acquired the stakes and their present fair value, shrunk to $5.2 billion. That’s less than a third of the paper profit SoftBank reported six months ago.Atul Goyal, an analyst at Jefferies Group, pointed out that the losses at Vision Fund essentially wiped out profits created by the rest of the company.“These results validate our concerns that most other things that SBG does outside of Alibaba have led to distractions or value destruction,” he wrote in a research note.Vision Fund 2 Is Risk to SoftBank Investors, Analyst Says (Video)SoftBank said it is introducing new governance standards for its portfolio companies, including the composition of the board of directors, founder and management rights, rights of shareholders, and mitigation of potential conflicts of interest. The new rules will “enhance value creation and liquidity” at portfolio companies, it said in a statement.Elliott wants SoftBank to set up a special committee to review the investment process at the Vision Fund, which it thinks has dragged on the share price despite making up a small portion of assets under management, people familiar with the matter have said.Son’s best bet to date is still the investment he made in Alibaba two decades ago. In the latest quarter, SoftBank said it booked a 331.9 billion yen gain from the e-commerce giant’s listing in Hong Kong.That deal turned Son’s $20 million into a stake worth over $130 billion, a spectacular return that cemented his reputation as an investor and helped him raise the original $100 billion Vision Fund. But the track record since then has been spotty. In addition to the WeWork fiasco, he suffered setbacks at portfolio companies, including Wag Labs, Zume Pizza and Brandless Inc.Son, asked repeatedly about the second Vision Fund at the conference in Tokyo, said he still wants to raise the money but acknowledged the WeWork troubles have set back those plans. Major backers of the first fund, Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala Investment Co., have remained on the sidelines so far. He said SoftBank may start with a smaller, bridge fund so it can keep doing deals.“A lot of our planned investors have been worried by the trouble at WeWork and Uber and we heard their feedback,” Son said. “It’s fully possible for us to carry on investing entirely with our own funds.”He wasn’t precise about what the size of the fund would be, and said that it “seems right that the scale is somewhat reduced this time.”At a Milken Institute conference in Abu Dhabi on Wednesday, Vision Fund head Rajeev Misra said that the second fund has already made seven investments and another six are in the pipeline. About a dozen companies from the first fund are expected to list in the next 18 months, he said.“There’s no rush, they don’t need capital,” Misra said. “A lot of them won’t even raise capital through an IPO, it will be a direct listing.”SoftBank has weighed contributing $40 billion to $50 billion for the second fund, people familiar with the matter have said.“The company will struggle to fund both Vision Fund II and buybacks unless they get a large outside commitment to VF II,” Chris Lane, an analyst with Sanford C. Bernstein, said prior to the announcement.SoftBank’s last share re-purchase was announced about a year ago, a record 600 billion yen.The company’s own sum-of-parts calculation puts its total value at more than 12,000 yen a share. That’s more than double SoftBank’s actual share price, which values the company at about $110 billion. Elliott thinks SoftBank’s net asset value could be about $230 billion, people familiar with the discussions have said.Son urged investors to focus on SoftBank’s shareholder value, which would include its stake in Alibaba, rather than operating profit, which is swayed by share price fluctuation in investments like Uber. To illustrate, he showed a slide with a famous visual illusion that can look like a duck or a rabbit depending on perspective.“The only measure by which SoftBank, an investment company, should be evaluated by is whether shareholder value rises or falls,” he said.(Updates with shares in eighth paragraph)\--With assistance from Nicolas Parasie.To contact the reporters on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net;Takahiko Hyuga in Tokyo at thyuga@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Peter ElstromFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • SoftBank's Biggest Name Is One Son Dare Not Mention
    Bloomberg

    SoftBank's Biggest Name Is One Son Dare Not Mention

    (Bloomberg Opinion) -- SoftBank Group Corp.’s chairman took to the stage Wednesday afternoon to gloat about the company’s return to profit in a horrible year and to name drop some of the wonderful companies in his orbit. But the most important name of all was missing: Paul Elliott Singer. Getting top billing in Masayoshi Son’s earnings presentation was Alibaba Group Holding Ltd., which netted the Japanese company a 331.9 billion yen ($3 billion) paper gain for the fourth quarter, and telecom arm SoftBank Corp., contributor of 244 billion yen in operating profit. Sprint Corp. also added to the bottom line, though investors were more excited Wednesday about the long-awaited approval of its merger with T-Mobile US Inc.Son couldn’t escape mentioning WeWork, formally know as The We Co., because it’s the elephant in the room weighing down the Vision Fund and by extension all of SoftBank. The $100 billion fund now has 88 portfolio companies. But Elliott Management Corp., the investment firm founded by Singer, was conspicuous by its absence in Son’s vocabulary. As a result, his evasion became an unintended key feature of his entire live performance.The famous activist investor was still there, writ large in a statement titled “SoftBank Group Adopts Enhanced Governance Standards for Investments.” Just last week, Elliott confirmed it had taken a nearly $3 billion stake in SoftBank because it saw room to close the gap between the value ascribed by equity investors and what its own balance sheet indicates. That news helped drive SoftBank’s share price up 8% for the largest gain in a year, a jump that was topped just a few days later when  the merger of the two U.S. telecom firms passed the final hurdle.Elliott has three key strategies that it hopes SoftBank can implement to boost the stock: a $20 billion share buyback, more independent directors, and better corporate governance, especially with regard to its investments.SoftBank’s press release on the governance, though, looks to be lip service rather than any kind of deep-seated reform. The four paragraph statement used the term standards eight times, but doesn’t actually detail what they are. We’re required to have faith that they exist and are robust. This new corporate governance policy wasn’t mentioned in the 83-page financial statement, and Son didn’t provide any details during two hours on stage. It wasn’t until two minutes from the end of Son’s set remarks that he even acknowledged Elliott, and then not by name but merely as “an activist investor.” He used the reference simply as proof that his pet peeve — that SoftBank’s share price severely lags its book value — was shared by others.Only during the Q&A session did Elliott’s name first get mentioned  — by a reporter. Son’s response, and many that followed, were consistent in dodging not only Elliott’s core demands but in recognizing that the U.S. fund even had a valid point. He demurred on the topic of buybacks, noting that they'd been done in the past. He claimed to have had plans to appoint more independent directors even before Elliott brought it up. He indicated that improving standards was already on the radar.Investors hoping for some contrition after the WeWork disaster — which saw SoftBank bail out the office rental company after an aborted IPO — would be sorely disappointed. Anyone believing that Son might suddenly discover the importance of enhanced management standards is naive. In his own words, corporate governance of startups is exercised by simply not investing in a problematic company.About the closest Son got to acknowledging any weaknesses in his strategy of making huge bets on unprofitable companies in the hope they’ll come good was to admit that he’d dialed back the size of the planned $108 billion SoftBank Vision Fund 2  — a possibility I foreshadowed last month. Smaller and more circumspect bets may now be on the table.Even before this second act, investors will need to contend with the more immediate fact that the Alibaba IPO was a one-time bonus, while the rest of SoftBank’s portfolio is at the mercy of stock markets at a time when the coronavirus epidemic is sending share prices on a roller-coaster ride.So while people may have high hopes about the role Elliott could play in spurring SoftBank to change its ways, they ought to take note of the fact that Son barely utters the name.To contact the author of this story: Tim Culpan at tculpan1@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Diversity's part of the deal: How equity is written into the T-Mobile-Sprint merger
    American City Business Journals

    Diversity's part of the deal: How equity is written into the T-Mobile-Sprint merger

    An external council will help T-Mobile identify how to attract diverse suppliers, develop entrepreneurs from underserved communities and use philanthropy to invest in a rich ecosystem of communities around the country.