The upcoming $26 billion merger between T-Mobile
The primary area of potential violation is that the deal may put competition in a precarious position, stemming from the all-stock portion of the deal. Executives have defended the companies' position by arguing that this clause is necessary to improve efficiencies in the merger, given its scale.
T-Mobile CEO John Legere met with Makan Delrahim, the antitrust division chief on Thursday to further defend the deal and its specific clauses. While the issue has not been taken to court yet, a decision should come to light soon given that meetings between senior executives and officials have been ongoing.
Many other issues have also been raised with respect to the merger, including the fact that it may cut jobs and exert downward pressure on wages, disproportionately hurt lower-income people and communities of color, and leave the majority of rural Americans without access to high-speed wireless.
Labor groups have begun protesting the deal. in the spirit of beltway politics, other pressure groups have also mobilized to rally against the merger. They see the deal as problematic not for what it inherently entails, but rather for the overarching trend of endowing large conglomerates with power that it represents.
T-Mobile technology chief Neville Ray said in the company's April meeting that the staff remains "very optimistic" they will win government approval. "We are in deep and strong and positive negotiation and discussion," Mr. Ray said. "We will answer every question that is put in front of us."
As a result of the all-stock deal, Sprint's shares are dwindling, trading at a 20% discount at $6.01. It therefore needs the merger to be passed, or else the chances of the company making a strong comeback are low, and will take a lot of time and capital. "Sprint is in a very difficult situation that is only getting worse," the company said.