Sprint (NYSE:S) shares took off like a Saturn rocket after a report in the Wall Street Journal said that a U.S. District judge is expected to rule in favor of its ruling with T-Mobile. (NASDAQ:TMUS).
The third-largest U.S. wireless carrier by subscribers has been awaiting a decision from a federal judge on whether it can move forward with its $26.5-billion merger with Sprint.
However, a deal can’t close until the California Public Utilities Commission approves the transaction, which still hasn’t occurred nearly two years after its announcement. T-Mobile, Sprint and Dish Network, which is awaiting approval to start a new national wireless network, all haven’t seen the judge’s ruling, according to people familiar with the matter. The details and potential conditions of the transaction are essential to ensuring the deal still makes sense to all parties, the people said.
The merger, expected to be announced later today, has been seen by many as a bellwether for the future of the U.S. wireless industry.
The carriers argued that the merger between the numbers-three and four wireless providers in the U.S. would accelerate the timeline for 5G technology.
The carriers also argued that there was sufficient competition in the wireless market, pointing to Dish, Comcast, and other satellite and cable companies that offer or plan to offer their own wireless subscription plans.
Sprint shares rocketed $3.53, or 73.5%, to $8.34, while T-Mobile stock rose $8.90, or 10.5%, to $93.43.
