Sprint and T-Mobile have reportedly wrapped up negotiations on a $32 billion merger deal, though a final announcement is not expected for another few weeks.
Terms of the agreement, according to the Wall Street Journal, include Sprint paying $40 per share for T-Mobile. But as with any deal, there is still a chance the acquisition—which would combine the country's third- and fourth-largest wireless carriers—could fall through.
Sprint declined to comment on the speculation; T-Mobile did not immediately respond to PCMag's request for comment.
Just last week, reports surfaced that Deutsche Telekom, which owns 67 percent of T-Mobile, agreed to sell the U.S. operator to SoftBank, a majority Sprint stakeholder. A merger would condense the number of major wireless competitors in the U.S., but give the combined Sprint/T-Mobile an edge in competing with AT&T and Verizon.
But not everyone favors the move: When rumors of the deal first emerged, PCMag's lead mobile analyst, Sascha Segan, outlined six reasons why a merger would be a bad idea.
Chief among them is the companies' incompatible networks, as well as the fact that "un-carrier" T-Mobile has recently excelled, pushing rivals like AT&T and Sprint to revamp their own plans.
Any deal between the tech heavyweights would require the approval of the Federal Communications Commission and the Department of Justice, which, in January, gave the idea a rather chilly reception.
Moving forward, Sprint may want to turn on the charm: According to the Journal, terms of the agreement state that if the feds reject this deal, Sprint must pay T-Mobile more than $1 billion in cash—a move that could hurt the already strapped carrier.
Back in 2011, AT&T tried to acquire T-Mobile, but eventually ditched that idea when regulators said it would be anti-competitive. When that deal fell apart, T-Mobile got a hefty break-up fee, which it used to boost its network and become the un-carrier.
For more, see Prepare for the Sprint/T-Mobile Merger Lies and Sprint and T-Mobile's Painful Technical Path.