T-Mobile Demanded Sprint $1 Billion Break Up Fee If Sprint T-Mobile Deal Goes Off

After the unsuccessful acquisition deal between AT&T and T-Mobile, Sprint showed interest in buying T-Mobile, but today's news indicates that history is repeating itself. When AT&T and T-Mobile deal was fall through, T-Mobile charged AT&T $3 Billion break up fee, now AT&T has made forward its statement first to Sprint and has demanded that if the Sprint T-Mobile deal went off , T-Mobile will charge Sprint $1 Billion breakup fee. Although the deal is still in progress and official statement from the officials has not came yet, but T-Mobile wants to secure this deal and putting up his demand before the official results proves that T-Mobile do not want this deal to Go-Off like with AT&T.

Sprint new owner "Softbank" has expressed his unhappiness with this demand from T-Mobile and stated that he would like to avoid this fee if it could be helped. Aside from big bulk breakup fee , T-Mobile also wants some major management holds in the deal and stated that if the deal went successful , John Legree , CEO of T-Mobile will be tasked to run the Sprint T-Mobile merger.

The reason why AT&T and T-Mobile merge was disapproved was due to less availability of carrier choice for customers. According to FTC and FCC, If the deal is approved customers will only have 3 choices left to choose from. According to them, Customers should have more choice of carriers to choose from and that's how a competition game begins.

Dish Network Chairman has openly stated that the company would consider a bid on T-Mobile if things do not work out with Sprint. This is because Dish Network does not have the resources that Sprint does to get into a bidding war with the company. Share you views in the comments below if you think this deal should go On or Off.