preview

Sprint And T-Mobile Merger Analysis

Decent Essays

Many companies in the United States are struggling to survive. These companies are experiencing significant decreases in revenue, reduced assets, and increases in liabilities. Companies that already filed, or are at-risk for filing bankruptcy are struggling with keeping up with their competitors, causing the companies to lose their value. When a company files for bankruptcy, the company no longer gets to make the business decisions. The bankruptcy courts begin to make the decisions for the companies in efforts to restore the businesses. If the company is unable to revive itself from bankruptcy status, the company goes out of business. If this occurs, the company must sell everything it owns in order to compensate its shareholders and repay …show more content…

If they are able to maintain the loyalty of most of their current customers, the companies will then have a shared amount of about 100 million customers. This potential customer volume for the merging companies would greatly outnumber the customer volume of the industry leaders, AT&T and Verizon. This kind of turnout would create greater competition between the two merging companies and the two leading companies (Sprint Wireless News, 2014). Although the outcomes seem promising for Sprint and T-Mobile, there are also potential negative effects of a merger that the companies should take into consideration. Current Sprint and T-Mobile customers have expressed their fear of the possible merger for multiple reasons. The two biggest worries for telecommunication services consumers is the potential for rising costs and a reduction in provider options (John, 2016). In making a final decision, the companies, as well as the Federal Communications Commission, should weigh the advantages and disadvantages of a …show more content…

This means that the next 3-5 years for the company, currently known as Sprint, looks promising. The merger may not create perfect business conditions for the company, but financial improvements will appear evident and Sprint’s legacy is likely to survive. However, if the merger does not go through, Sprint Corporation is still at-risk for closing its doors within the next couple of years. If Sprint does not merge with T-Mobile, and the executive leaders fail to develop effective strategies to revive its current financial situation, I am predicting that Sprint Corporation will no longer exist in the near

Get Access