- SoftBank's (SFTBY -0.4%) Masayoshi Son may be engaging in some high-stakes brinksmanship with his reported walk-away from merger negotiations between subsidiary Sprint (NYSE:S) and T-Mobile (NASDAQ:TMUS), New Street Research says, and that could force him to consider taking Sprint private to avoid a long share-price decline.
- Failing to carry a merger across the finish line means abandoning $50B in value, analyst Jonathan Chaplin writes, and it would mean SoftBank would need to invest billions more in Sprint's network.
- "If Softbank doesn't take Sprint private, the stock will be headed lower, and may well languish for some time before the new, new turnaround story emerges," Chaplin writes. "This may be wishful thinking on the part of Sprint investors (and one embattled analyst); however, it isn't crazy (though we wouldn't expect the market to take it seriously)."
- Both companies are stable today after tumbling yesterday: S +1%; TMUS +0.3%. T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) is up 0.2%.
- Previously: Sprint, T-Mobile pare losses as CNBC contradicts merger pullout (Oct. 30 2017)
- Previously: Telecom stocks roiled by report of Sprint/T-Mobile deal breakdown (Oct. 30 2017)
- Now read: FCC Approves CenturyLink (NYSE:CTL) Acquisition Of Level 3: To Buy Or Not To Buy?
Original article