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Potential merger of Sprint and T-Mobile falls through

California business owners might be interested to learn that the potential merger between T-Mobile and Sprint has apparently fallen through. The two companies issued a joint statement on Nov. 4 that the merger would not happen.

In the statement, the companies said that their talks had ended. There has been ongoing speculation for several years that the companies would merge. Recently, T-Mobile has enjoyed a growth in its customer base while Sprint has been saddled with debt. T-Mobile stated that it could not proceed with a deal unless doing so would add value for its customers.

Sprint has suffered substantial annual losses each year for several years. If the merger had been successful, the resulting company would have boasted 130 million customers. Currently, T-Mobile and Sprint are the third- and fourth-largest cellular companies in the U.S. behind AT&T and Verizon. According to some analysts, the unusual nature of the joint statement made by the companies could indicate that they may attempt to return to talks in the future.

Mergers and acquisitions can offer companies opportunities for growth. In order to be successful, it is important for companies to conduct due diligence during the merger process. Corporate law attorneys may help their clients with conducting in-depth research and analysis of the target companies. They may also offer legal advice about the laws and regulations that might impact any potential deal. If the target company has too many problems, the lawyers may advise entrepreneurs to walk away in order to help them to save money and to avoid losses. If they are good deals, the lawyers may help their clients to complete the transactions.

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