Published: Wed, February 12, 2020
Markets | By Otis Pena

Federal judge approves T-Mobile and Sprint merger, dismisses antitrust lawsuit

Federal judge approves T-Mobile and Sprint merger, dismisses antitrust lawsuit

"Marrero's decision validates our view that this merger is in the best interests of the USA economy and American consumers", said Sprint executive chairman Marcelo Claure in a statement.

As expected, USA federal judge Victor Marrero today approved T-Mobile's proposed $26 billion acquisition of Sprint, which would create a dominant third-largest carrier alongside AT&T and Verizon in the United States.

Gigi Sohn, a former Federal Communications Commission adviser who is now a fellow at Georgetown's law school, said that while consumers are often promised benefits from mergers, "what they are left with each time are corporate behemoths" that can raise prices and destroy competition.

"Sprint has no alternative but to take whatever DT and T-Mobile offers them", he said.

"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!" said John Legere, CEO of T-Mobile US, in a statement.

Sprint Executive Chairman Marcelo Claure: "Judge Marrero's decision validates our view that this merger is in the best interests of the USA economy and American consumers".

Sprint shares jumped 78%, T-Mobile rose 12% and Dish climbed 7% in trading Tuesday after the ruling came out.

Watch trailer for ‘The Hunt,’ the controversial film slammed by Trump
He added, "The movie was actually pretty balanced in terms of the shots that it took". But on Tuesday, the studio released a trailer announcing a March 13 release date.


A USA district judge is expected to rule in favour of Sprint and T-Mobile merger, the Wall Street Journal reported on Monday, citing people familiar with the matter.

But a group of state attorneys general tried to block the deal, arguing that having one fewer phone company would cost Americans billions of dollars in higher bills.

Marrero's decision comes after the Justice Department already approved the deal.

New York Attorney General Letitia James, one of the leading attorneys general in the case, said her office was considering an appeal. A utility board in California also has to approve the merger. Dish is also required to build a 5G network over the next several years.

"The court concludes that the proposed merger is not reasonably likely to substantially lessen competition in the" mobile service market, the ruling said, adding that the merger would "enhance competition in the relevant markets to the benefit of all consumers".

The FCC wants to make sure rural Americans are well served, confirming on Tuesday that T-Mobile and Sprint have committed to delivering high-speed 5G internet to 97 percent of the country within three years of closing. "We are eager to begin serving Boost customers while aggressively growing the business as a new competitor, bringing lower prices, greater choice and more innovation to consumers". The new Dish wireless network will start life with about 9 million subscribers. He said Dish's entry into the market would be good for competition.

Like this: