About two and half years ago, the news was filled with rumors about a possible merger between T-Mobile and Sprint. That merger never happened, but now new rumors of a possible merger have been revived, causing the two company’s stocks to rally on Wall Street.
Both T-Mobile and Sprint’s stock prices rallied Friday afternoon following a Reuters report that Japan’s SoftBank Group is considering ceding control of Sprint to Deutsche Telekom, bolstering the possibility of a long speculated merger between the third and fourth largest U.S. wireless carriers.
SoftBank hasn’t approached Deutsche Telekom, the majority owner of T-Mobile, yet, the report says. That’s because the Federal Communications Commission had banned discussions among rivals during an ongoing wireless spectrum auction. But Reuters, which pinned the report on people familiar with the matter, said merger discussions could begin in April.
T-Mobile’s stock closed up around 5.5%; Sprint’s stock climbed 3.3%.
Sprint and T-Mobile declined comment on the report.