Sprint and T-Mobile are close to finishing a $32 billion deal

Cellular carriers Sprint and T-Mobile have agreed upon an outline for a proposed merger that would see Sprint acquiring its rival company for around $32 billion dollars. Sources tell the Wall Street Journal that Sprint would pay about $40 a share for T-Mobile. The deal would further consolidate the cellular marketplace, reducing the number of large carriers to three if it is able to pass federal regulation. A formal contract hasn’t been laid out, but the two companies have come to an agreement over “broad terms” of the deal. Such terms include Sprint paying out $1 billion in assets and cash to T-Mobile if the deal doesn’t pass regulatory scrutiny or is terminated.

Sprint Corp. and T-Mobile US Inc. have agreed on the broad outlines of a merger valuing T-Mobile at around $32 billion, as recent regulatory developments convinced executives at both telecommunications companies that they have an opening to get a deal approved, according to people familiar with the matter. The terms involve Sprint paying around $40 a share for T-Mobile in an acquisition that could happen early this summer, the people said. The companies are still working toward a formal contract, and the effort could fall through. But if completed, the merger would combine the country’s third- and fourth-largest wireless operators, creating a bigger competitor to market leaders Verizon Communications Inc. and AT&T Inc. while leaving consumers with fewer choices for service. A deal between Sprint and T-Mobile would extend a wave of consolidation that is uniting some of the biggest companies in the telecom and media industries, and is expected to face strong opposition from regulators and a lengthy antitrust review.