Sprint and T-Mobile Agree on Terms of $32B Deal

Re:Sprint and T-Mobile Agree on Terms of $32B Deal by ashbrahma on Wednesday June 04, 2014 @07:10PM (#7849064)

Good news is if this deal doesn't go through, T-Mobile gains to make over a billion dollars to make its network better/faster. * AT&T paid about 4 billion in cash and spectrum when the last merger fell apart..

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Re:Sprint and T-Mobile Agree on Terms of $32B Deal by bicknergseng on Wednesday June 04, 2014 @07:35PM (#7849171)

Best business model ever.

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Re:Sprint and T-Mobile Agree on Terms of $32B Deal by gtremper on Wednesday June 04, 2014 @07:44PM (#7849204)

next up, Verizon.

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Re:Sprint and T-Mobile Agree on Terms of $32B Deal by jessriedel on Wednesday June 04, 2014 @08:49PM (#7849483)

Can only explain the business reasoning surrounding breakup fees? Why does one company stand to lose more or less than another one if things don't go through? Why is the merger worth more to one than the other?

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Re:Sprint and T-Mobile Agree on Terms of $32B Deal by rogerbinns on Wednesday June 04, 2014 @09:36PM (#7849682)

It is distracting to the target and will require them to do lots more work. For example they will need to provide the materials necessary for due diligence. The fee ensures the acquirer is serious, and that the target is adequately compensated if it doesn't go through.

The acquirer also makes it harder for others to bid because they too need to take into account the fee.

https://en.wikipedia.org/wiki/Breakup_fee

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Re:Sprint and T-Mobile Agree on Terms of $32B Deal by stephengoodwin on Wednesday June 04, 2014 @08:14PM (#7849323)

How does T-Mobile get away with negotiating such good break up fees?

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Re:Sprint and T-Mobile Agree on Terms of $32B Deal by tpeng on Wednesday June 04, 2014 @10:49PM (#7849931)

$1 billion is only about 3% of the deal price. It's not that high considering the regulatory risk.

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Re:Sprint and T-Mobile Agree on Terms of $32B Deal by sbd on Wednesday June 04, 2014 @07:45PM (#7849209)

Where did they announce the terms of the break fee?

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Re:Sprint and T-Mobile Agree on Terms of $32B Deal by DAddYE on Wednesday June 04, 2014 @07:57PM (#7849257)

here: http://online.wsj.com/news/articles/SB1000142405270230465530...

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