U.S. Judge Expected to Allow T-Mobile/Sprint Merger: Sprint Shares Skyrocket 70%
Shares of Sprint (NYSE:S) exploded in after-hours trading today by more than 70%.
Why? Because a Federal judge is heavily expected to finally rule in favor of the long-awaited merger that was announced some years ago.
U.S. District Court Judge Victor Manerro informed both sides informally today, and now the news is finally spreading to media and investors alike. Sprint shares have been in a holding pattern, with a slightly declining trend, since the deal was announced as many started to wonder if the deal would ever get approved.
The decision comes as a huge win for each side, especially struggling #4 American telecom Sprint, for which T-Mobile (NASDAQ:TMUS) will be paying a ransom of $26.5 billion to acquire.
After the merger, the Sprint brand will all but disappear and all operations will be rolled up under the T-Mobile flag, which now with a combined total of 80 million, will put it slightly ahead of AT&T and its 75 million users.
It's been two very long years for both sides and tomorrow's formal ruling will bring a good deal of relief to the parties including Dish Network, whom will be the beneficiary of some assets that the combined T-Mo/Sprint corporation will have to shed per government stipulations of the deal.
In extended-hours trading, Sprint is currently trading at $8.30, up 73% from its close of $4.80. T-Mobile stock is up a more modest 9%.
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