Earlier today, the FCC officially recommended the approval of the $26.5 billion proposed merger between T-Mobile (TMUS) and Sprint (S). The chairman of the FCC, Ajit Pai, shared a draft order with other FCC commissioners, who will vote on the deal. According to CNBC, the draft order still requires the approval of the “two of the other four FCC commissioners.”

Bloomberg reported that Bloomberg Intelligence analyst Matthew Schettenhelm stated in a note, “The Democrats can delay a vote until Sept. 25, but may agree to move ahead before then.” The proposal would allow T-Mobile and Sprint to combine and divest certain assets to Dish Network.

FCC approved T-Mobile and Sprint merger

Pai noted in today’s statement, “After one of the most exhaustive merger reviews in Commission history, the evidence conclusively demonstrates that this transaction will bring fast 5G wireless service to many more Americans and help close the digital divide in rural areas. Moreover, with the conditions included in this draft Order, the merger will promote robust competition in mobile broadband, put critical mid-band spectrum to use, and bring new competition to the fixed broadband market.”

In response to Pai’s announcement of support of the merger, FCC Commissioner Jessica Rosenworcel tweeted, “I am not convinced that removing a competitor will lead to better outcomes for consumers.”

T-Mobile’s CEO, John Legere, tweeted that the order was “another milestone toward bringing #NewTMobile and #5GForAll to life for US consumers!”

DOJ approved merger

Last month, the Department of Justice approved the T-Mobile and Sprint merger on the condition that the companies would divest certain wireless assets to Dish. The DOJ called the FCC’s order an “important milestone.” DOJ’s Assistant Attorney General Makan Delrahim added, “We are now one step closer to strengthening competition for high-quality 5G networks that will benefit American consumers nationwide.”

T-Mobile and Sprint merger lawsuit

About 16 state attorneys general are opposing the T-Mobile and Sprint merger deal. Earlier in August, Oregon and Texas were the latest states to join the lawsuit, which was originally filed in June.

The states’ litigation alleges that the merger could reduce competition, increase prices for consumers, and harm jobs. The states also argued that the deal would cost their consumers about $4.5 billion annually.

The antitrust trial is set to begin on December 9. Notably, the T-Mobile and Sprint merger transaction might not close until the states’ litigation concludes.

In the June quarter, T-Mobile reported adjusted EPS of $1.09 on revenue of $10.98 billion. Sprint posted adjusted EPS of -$0.03 on revenue of $8.14 billion in the quarter.

On August 14, T-Mobile closed at $76.93, which was 0.89% lower than its previous closing price. Sprint stock fell 0.15% and closed at $6.79 on the same day.

To learn more about the T-Mobile and Sprint merger, please read Why T-Mobile and Sprint Merger Odds Reach 50%. Also, check out Does T-Mobile Stock Still Have Upside Potential?

Latest articles

Apple (AAPL) investors have had a roller coaster week. Apple stock has lost just under 2% in a week, ending on August 23, 2019.

Competition taking a toll on Netflix as its share of US subscription video streaming market keep falling as rivals gain ground.

Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”