Some analysts may think that Judge Victor Marrero will decide to block T-Mobile and Sprint’s merger, but T-Mo COO Mike Sievert is remaining positive.
Speaking at an investor relations event today, Sievert said that “right is on our side” in T-Mobile’s effort to win the lawsuit brought by a group of state attorneys general and merge with Sprint. “We’re very anxious to see the judge’s verdict,” Sievert went on to say.
Despite his confidence, the soon-to-be-CEO did confirm that he would consider a settlement with the state AGs. “Of course. It’s never off the table,” Sievert said.
Testimonies in the trial wrapped up last month and final arguments are slated to happen on January 15th. It’s expected that Judge Marrero will make a decision in the case in February.
Meanwhile, a report from Fox Business‘s Charles Gasparino says that T-Mobile and Sprint may team with the Department of Justice to appeal the judge’s ruling if he blocks the merger. There’s reportedly nothing set in stone right now, though, because all parties are waiting for Judge Marrero’s decision before making any plans.
If the merger is blocked, T-Mobile does have a couple of backup plans. During the same investor event today, T-Mobile CFO Braxton Carter said that if the merger fails, T-Mo will immediately begin a $9 million stock buy-back and that getting more spectrum would be a focus. T-Mobile CTO Neville Ray agreed, saying that the carrier would be interested in acquiring C-Band spectrum or 3.5GHz CBRS airwaves.
Carter also hinted that acquisitions of smaller carriers are a possibility if the Sprint merger falls through, saying that there could be some “wonderful synergies”.
The merger is a big deal for T-Mobile, having been working on it for more than a year and a half, making a deal with Dish Network, pledging to build new customer service centers, and even teasing three new Un-carrier moves if the merger happens. It’s anyone’s guess how the judge in the trial will rule right now, though, and so it’s smart for T-Mo to have a backup plan or two to help it continue to build out its 5G network and compete with AT&T and Verizon if the merger is blocked.
Source: Light Reading