In case you have been living under a rock the past couple of years, T-Mobile US Inc TMUS 1.06% and Sprint Corp S 6.1% are considering a merger. The latest rumors started this week when a person familiar with the matter told reporters that SoftBank Group is willing to give up its majority ownership of Sprint.
In light of the most recent round of rumors, Baird analyst William Powerprovided an update on what traders should be watching for if a deal is announced. According to Power, any delays in the deal are likely due to valuations concerns on the part of T-Mobile. However, Power said there are clear scale advantaged to a merger that will likely keep both companies pushing for a deal.
Surprisingly, Power named Verizon Communications Inc. VZ 1.96%and AT&T Inc. T 0.97% as two major beneficiaries of a T-Mobile-AT&T union. Power said AT&T would particularly benefit from reducing the number of nationwide competitors down to only three names.
Tower operators, on the other hand, would now be in a fierce competition for the business of only three potential customers. Power said Amdocs Limited DOX 0.72% could be hit particularly hard if T-Mobile and Sprint initially dial back spending in preparation for merger-related costs.
Another potential loser from a completed deal would be DISH Network Corp DISH 0.02%, which could be left without a viable buyer for its spectrum moving forward.
Finally, Power said…
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