Sprint and T-Mobile are close to merging. The terms of the deal as currently reported has Sprint paying $40 per share for T-Mobile, which values T-Mobile at approximately $32 billion. Both of the companies have had a hard time competing with Verizon and AT&T in the U.S. cellular phone business. Sprint has lost money in its last 7 quarters and while T-Mobile has gained some steam with its “no contract” plans, it is still a distant player compared to the big two.
A few years ago, AT&T tried buying T-Mobile. Terms were set and both sides agreed but the U.S. Department of Justice closed down the deal, stating that it would hinder competition. This deal, should it go forward, has a better chance of being completed as it combines the third- and fourth-largest carriers. For more information, visit this Wall Street Journal article.