Sprint reportedly has gotten assurances from at least
o banks about the feasibility of raising enough money to finance a takeover of T-Mobile US.
The proposals envision a total enterprise value (value of outstanding equity and debt) of about $50 billion for the deal.
It might cost $31 billion to buy all T-Mobile US shares and then also raise about $20 billion to cover the cost of assuming existing T-Mobile debt.
But financing is likely to be the least of concerns about any such combination. The bigger issues involve antitrust clearance and approval by the Federal Communications Commission, since the U.S. Department of Justice already has said it considers the U.S. mobile market too concentrated already.
Thursday, January 16, 2014
Sprint Can Get Financing for T-Mobile Bid
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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