T-Mobile To Sell Boost Mobile In Order To Merge With Sprint
T-Mobile is preparing to auction of Boost Mobile if talks with Dish Network Corporation stall and the deal falls through.
The deal, being brokered by Goldman Sachs, is a concession from T-Mobile to the U.S. Department of Justice, in an effort to get regulatory approval for a merger with Sprint Corp. The possible $26.5 billion merger with Sprint has not yet been approved by the U.S. Department of Justice antitrust chief.
The terms of the auction are being held as Goldman Sachs waits to hear whether the U.S. Department of Justice will seek further concessions. Further concessions mean that more assets will need to be auctioned off in order for the merger to be approved.
Some concessions currently on the table are a divestment in wireless spectrum, also known as the airwaves that carry data, from both T-Mobile and Sprint. Additionally, both corporations might be pushed to either give up a portion of their retail customers or retail shops. Both concessions would help preserve competition in the industry.
Other companies have expressed interest in acquiring Boost, including Amazon.com Incorporated, Comcast Corporation and Charter Communications.
Further word from the U.S. Department of Justice will provide the details necessary for Goldman Sachs to either push the deal forward with Dish Network Corp or present an offer to bidders.