T-Mobile-Sprint's $26B deal approved by judge, stocks spike
Wall Street bet incorrectly on the telecom deal falling through
A judge has officially approved the $26 billion merger between T-Mobile and Sprint. FOX Business' Maria Bartiromo with more.
T-Mobile's $26 billion tie-up with Sprint won a blessing from a federal judge Tuesday.
Both stocks soared at the open Tuesday, with Sprint rallying over 70 percent, after closing lower in Monday's session after investors speculated the deal would face roadblocks from the state attorneys general suing to block the deal on the grounds it would lead to higher costs for consumers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| S | SENTINELONE INC | 26.11 | -1.25 | -4.57% |
| TMUS | T-MOBILE US INC. | 235.61 | -2.14 | -0.90% |
FCC APPROVES T-MOBILE-SPRINT MERGER, REQUIRES BOOST MOBILE DIVESTITURE
The companies, as reported by FOX Business, had remained confident the deal would win the OK on the grounds the case brought by at least 13 state AGs, including New York, was not strong.
FOX Business' Charlie Gasparino says T-Mobile CEO John Legere feels confident that the State AG's will lose their case to break up the contested T-Mobile/Sprint merger.
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Last month, FOX Business' Charlie Gasparino asked T-Mobile CEO John Legere, if he had a plan to appeal if the deal was torpedoed.
While he declined to comment directly, he did say, "It's a hypothetical I don’t expect to have to face," he said.
"I feel very confident," he added at the time.
The combined company will create a stronger competitor against bigger telecoms including AT&T and Verizon. It is also expected to help strengthen America's position in 5G against China.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| T | AT&T INC. | 22.69 | +0.45 | +2.00% |
| VZ | VERIZON COMMUNICATIONS INC. | 41.65 | +0.79 | +1.93% |
New York Attorney General Letitia James said Tuesday she is considering appealing the decision.
"From the start, this merger has been about massive corporate profits over all else, and despite the companies’ false claims, this deal will endanger wireless subscribers where it hurts most: their wallets," James said in a statement.
Federal Communications Commission Chairman Ajit Pai said the merger will "help close the digital divide and secure United States leadership in 5G."
"This is a big win for American consumers," Pai said.
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FOX Business' Suzanne O'Halloran contributed to this report.