Department of Justice reportedly opposes current proposal for T-Mobile-Sprint merger

T-Mobile CEO John Legere

The Wall Street Journal and Reuters both report that DOJ officials are highly skeptical of the deal.

According to people familiar with the matter, staff members of the US Department of Justice have already told T-Mobile and Sprint that the merger isnt likely to be approved in its current state.

Sprint shares fell about 9 percent after the bell as investors increased bets the deal would not be completed following a Wall Street Journal report the merger is unlikely to be approved as now structured. The ball is in T-Mobile and Sprint's court to convince our government that a merger of the two carriers won't be a bad thing.

Also, DOJ officials reportedly questioned T-Mobile and Sprint's claims that the merger would lead to important efficiencies.

A sign for a T-Mobile store is seen in Manhattan, New York, U.S., April 30, 2018.

Sprint and T-Mobile declined to comment further when contacted by Ars.

T-Mobile and Sprint did not immediately answer messages.

If you believe T-Mobile, the Sprint merger is completely, 100% necessary for it to field a 5G network that is competitive with Verizon and AT&T.

It's said that T-Mobile could still turn things around by offering assets sales to alleviate the DOJ's concerns, but it's now unclear what the next steps are.

The Obama administration rebuffed the companies' earlier effort to merge, as well as an attempted deal between AT&T and T-Mobile, on concerns such deals would hurt competition in the wireless industry. When companies as big as T-Mobile ... The report said the government and the companies are still talking.

The Federal Communications Commission is also reviewing the deal and hasn't said whether it will approve it. Besides the federal agencies, states are reviewing the merger and could sue to block it even without DOJ help.

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