Charter Communication is reportedly “not interested” in merging with Sprint after reports stated that SoftBank advanced an offer on the matter.
Initial reports said that the SoftBank Group Corp. chairman, Masayoshi Son, had proposed a cash and stock Charter merger. This was reported by several sources, which then offered the same additional details.
Namely, that the purpose of such a merger would be to create a new company that would be publicly traded. One that would be putting together Charter and Sprint, and which would ultimately be controlled by SoftBank.
However, according to later reports on the matter, Charter refuted the claims and stated that ‘it is not interested’ in a Sprint merger. The proposal was reportedly rebuffed on Sunday, July 30, but is seemingly not the last try.
“We understand why a deal is attractive for Softbank, but Charter has no interest in acquiring Sprint,” a Charter spokesperson is reported as having said.
Other reports state that the Charter management team actually met and took the proposal to the company’s board, as they allegedly took into consideration a Sprint merger, even for a short while. According to a person that is said to be familiar with the subject, the team then decided that it was ultimately ‘a bad idea’.
Sprint Merger Rebuffed, Acquisition Looming?
New reports state that Son is still looking to propose an offer to Charter, one that could raise its interest. According to the latest rumors, SoftBank could make an acquisition offer directly to Charter, as it might seek to buy the company directly.
According to other reports following the same path, this new offer could drop sometimes this week. This could also once again rekindle the communication between the companies, which was seemingly dropped after Charter refused the merger idea.
It remains to be reported or seen when or if a new offer will be advanced. Also, it is yet unclear if Charter will accept this possible newest proposal.
Charter and Comcast have reportedly been in talks with Sprint since late May. But according to sources privy on the matter, these discussions came to an end last week. Charter seems to have thus ended its talks with Sprint regarding their wireless services plans.
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