Why Sprint Stock Popped Today
Shares of No. 4 wireless carrier Sprint (NYSE: S) have popped today, up by 10% as of 3 p.m. EDT, following reports that the Department of Justice is about to approve the merger now that DISH Network (NASDAQ: DISH) has finalized a deal to acquire divested assets. T-Mobile (NASDAQ: TMUS) stock also gained on the news.
Last week, CNBC had reported that the DOJ would reach a decision this week, but T-Mobile parent Deutsche Telekom need to approve of the proposed divestiture. Various regulators have long been in talks with T-Mobile and Sprint regarding their proposed merger, requiring various concessions designed to preserve competition in order to sign off on the deal. DISH has emerged as the top suitor for divested assets that include wireless spectrum and Sprint subsidiary Boost Mobile, which focuses on the prepaid market that T-Mobile already dominates.
Sprint Executive Chairman Marcelo Claure and T-Mobile CEO John Legere. Image source: T-Mobile.
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