The latest negotiations come after Reuters reported earlier this year that Japan's SoftBank was prepared to give up control of Sprint to clinch a merger with T-Mobile, and only retain a minority stake in the combined company.
Sprint and T-Mobile, which is controlled by Germany's Deutsche Telekom AG, are still weeks away from an agreement, and have not settled on a share exchange ratio or even started performing due diligence on each other, the source added.
Despite potential antitrust risks, investors have long expected a deal between T-Mobile and Sprint, the third- and fourth-largest U.S. wireless service providers, hoping for cost cuts and other synergies.
T-Mobile has been gaining share from larger U.S. competitors AT&T Inc and Verizon Communications Inc in a saturated U.S. wireless market, through network improvements and lower prices.
SoftBank previously abandoned talks to acquire T-Mobile and merge it with Sprint three years ago, amid opposition from U.S. antitrust regulators.
- T-Mobile and Sprint Could Be Looking to Merge—AgainYahoo Finance
- Will T-Mobile (TMUS) And Sprint (S) Ever Tie The Knot?Nasdaq
- SoftBank CEO Says T-Mobile-Sprint Deal Will Lift CompetitionBloomberg
- Sprint back in merger talks with T-MobileNew York Post
- Sprint T-Mobile Deal: Carriers Restart Talks About Potential MergerInternational Business Times
- T-Mobile and Sprint may finally be getting togetherCNET
- T-Mobile and Sprint Shares Pop on Renewed Merger ChatterYahoo Finance
- Sprint, T-Mobile said to hash out terms to bring deal closerHouston Chronicle
- T-Mobile and Sprint in talks of a merger, againGSMArena.com