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.

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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%.

The author has no position in any of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.