Stock price movement
The telecom sector had a bad day last Thursday, with wireless stocks Verizon (VZ), AT&T (T), T-Mobile (TMUS), and Sprint (S) falling on doubts whether the much-awaited Sprint–T-Mobile deal would happen. Sprint and T-Mobile fell 6.14% to $5.66 and 4.28% to $69.15, respectively, after reports of regulatory hurdles related to the merger. The news also pulled down Verizon and AT&T, which fell 2.96% and 1.24%, respectively. Verizon’s, AT&T’s, T-Mobile’s, and Sprint’s market caps stood at $244 billion, $225.9 billion, $58.8 billion, and $23.1 billion on Thursday.
Sprint and T-Mobile had first agreed to merge in 2014 but parted ways due to regulatory obstacles. In April 2018, T-Mobile again proposed a merger with Sprint, valuing the company at $59 billion (including debt). However, both companies are dealing with various regulatory issues. According to Bloomberg, New York and other states are trying to block the deal on anticompetitive grounds. Officials disagree with Sprint’s claim that it cannot compete independently in the market.