América Móvil does not have any plans to acquire a U.S. carrier, the company's management said during the carrier's second quarter earnings call. The statement serves to squash speculation that América Móvil might purchase T-Mobile US with the money it expects to raise through a sale of its assets.
Sprint and T-Mobile US reportedly won't announce any kind of merger deal until August, but the potential combination has a major backer in billionaire hedge fund manager John Paulson.
Sprint and T-Mobile US plan to create a joint venture to bid for spectrum in next year's planned incentive auction of 600 MHz broadcast TV spectrum, according to a Bloomberg report. Meanwhile, the Wall Street Journal separately reported that the JV will seek to raise $10 billion for bidding.
Sprint parent SoftBank and T-Mobile US parent Deutsche Telekom have reportedly reached a "basic agreement" for Sprint to merge with T-Mobile, according to a report in the Japanese business publication Nikkei.
So far 2014 is the biggest year for deals among chipset companies since 2011--and it's not over yet. Almost $11 billion worth of North American semiconductor transactions were announced in the first half of 2014, according to data compiled by Bloomberg.
Mexican billionaire Carlos Slim will buy AT&T's stake in América Móvil for $5.6 billion, further tightening his grip on the Mexican telecommunications giant. AT&T had been expected to sell its holding in América Móvil as a way to ease regulatory passage of its proposed $49 billion deal for DirecTV.
AT&T CEO Randall Stephenson said it would be a "stretch" for a deal between No. 3 carrier Sprint and No. 4 player T-Mobile US to get approved by regulators.
The T-Mobile US brand will continue to thrive and the Sprin brand will likely take a back seat to T-Mobile if the two companies merge, according to a CNBC report.
Sprint and T-Mobile US are reportedly closing in on a deal for Sprint to pay around $32 billion for T-Mobile, and while the deal is not yet final, financial analysts say that Sprint would need to slash its prices to match those of lower-cost T-Mobile if the deal went forward.
T-Mobile US CEO John Legere would likely lead a combined company if Sprint and T-Mobile were to merge, according to a Bloomberg report. Legere is just one of the personalities at the center of the deal, which is being driven by SoftBank CEO and Sprint Chairman Masayoshi Son.