Google's chief business officer, Nikesh Arora, is leaving the company to become vice chairman of Japanese wireless carrier SoftBank. The move overshadowed the release of Google's second-quarter earnings Thursday and is the latest shakeup in the search giant's executive team.
Sprint and T-Mobile US reportedly won't announce any kind of merger deal until August, but the potential combination has a major backer in billionaire hedge fund manager John Paulson.
Sprint parent SoftBank and T-Mobile US parent Deutsche Telekom have reportedly reached a "basic agreement" for Sprint to merge with T-Mobile, according to a report in the Japanese business publication Nikkei.
Sprint CEO Dan Hesse said that creating a bigger No. 3 carrier in the U.S. market would lead to better coverage in rural areas. Though Hesse did not specifically address a merger between No. 3 carrier Sprint and No. 4 carrier T-Mobile US, in an interview with Cnet he said that the creation of a larger rival to AT&T Mobility and Verizon Wireless would likely lead to that third carrier providing better coverage in rural areas.
SoftBank CEO Masayoshi Son told a group of reporters in Tokyo that he is hopeful that there will be more discussion about a possible acquisition of T-Mobile USA by Sprint and that more discussion will lead to less resistance from regulators to a possible merger of the two companies.
The T-Mobile US brand will continue to thrive and the Sprin brand will likely take a back seat to T-Mobile if the two companies merge, according to a CNBC report.
Sprint and T-Mobile US are reportedly closing in on a deal for Sprint to pay around $32 billion for T-Mobile, and while the deal is not yet final, financial analysts say that Sprint would need to slash its prices to match those of lower-cost T-Mobile if the deal went forward.
T-Mobile US CEO John Legere would likely lead a combined company if Sprint and T-Mobile were to merge, according to a Bloomberg report. Legere is just one of the personalities at the center of the deal, which is being driven by SoftBank CEO and Sprint Chairman Masayoshi Son.
With reports indicating that Sprint and T-Mobile US are closing in on a deal that would see Sprint pay around $32 billion for T-Mobile, the biggest question is: Could such a deal win approval from regulators at the FCC and Department of Justice? The outlook is decidedly unclear and probably not that favorable, according to most analysts and industry experts.
Sprint CEO Dan Hesse said he does not see the carrier going head-to-head in the near-term with the likes of Comcast, Verizon Communications and AT&T in the market for wired home broadband Internet access. Hesse's comments, made during a Sprint meeting with industry analysts and relayed by an analyst, stand in contrast to the long-term vision of Sprint Chairman and SoftBank CEO Masayoshi Son, who has said Sprint could eventually compete in and shake up the wired broadband market in the U.S.