DOJ reportedly unlikely to approve T-Mobile-Sprint merger as it’s structured

T-Mobile/Sprint merger is in danger of being rejected by DOJ

T-Mobile/Sprint merger is in danger of being rejected by DOJ

The DOJ could also approve the merger with conditions, but that would require agreement with T-Mobile and Sprint on what those conditions would be.

A sign for a T-Mobile store is seen in Manhattan, New York, U.S., April 30, 2018.

Today's report also says that some state antitrust officials have similar concerns about the T-Mobile-Sprint merger and that they plan to launch a legal challenge to the deal if the Department of Justice doesn't oppose it.

T-Mobile CEO John Legere tweeted that the premise of the Journal's story, "as summarized in the first paragraph, is simply untrue". The report said the government and the companies are still talking.

According to people familiar with the matter, the DOJ's antitrust division is concerned that the merger would threaten competition in the market.

DOJ staffers "have told T-Mobile US and Sprint that their planned merger is unlikely to be approved as now structured", The Wall Street Journal reported today, citing people familiar with the matter.

Wall Street has grown more skeptical of the merger being completed in recent months. T-Mobile and Sprint previously insisted that the merger would create jobs and lead to improved networks.

T-Mobile has defended the proposed merger, saying the combined company would be better and faster at building 5G, the next generation of wireless, to compete with industry leaders AT&T Inc and Verizon Communications Inc.

To win support for the deal, T-Mobile had said it would not increase prices for three years and has pledged to use some spectrum for wireless broadband in rural areas. DOJ spokesman Jeremy Edwards declined to comment on an ongoing investigation.

T-Mobile has spent at least $195,000 at President Trump's hotel in Washington, DC while lobbying for Trump administration approval of the merger.

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