Sprint And T Mobile Merger Decision - 1468 Words

Sprint and T-Mobile Merger Decision Sprint and T-Mobile are both owned both majority owned by large international telecommunications groups. Sprint is majority owned by SoftBank in Japan, and T-Mobile is majority owned by Deutsche Telekom of Germany (Gelles De La Merced, 5 Jun 2014). The decision to end talks to merge Sprint and T-Mobile companies was a tough decision for Masayoshi Son. Son is a billionaire who controls SoftBank as president and chief executive officer, is an entrepreneur who reshaped Japan’s wireless industry, and has goals of reshaping wireless industry in the United States. Sprint and T-Mobile are the third and fourth largest wireless carriers in the United States. Using the vision by Mr. Son to combine the companies would greatly increase his ability to compete with ATT and Verizon Wireless for customers. If Mr. Son was to make such a significant decision for his company to merge and purchase T-Moble and create a merger, he should consider the Vroom-Yetton model’s seven questions to help guide him with his decision making style. †¢ Is the quality of the decision important? In the case of the Sprint and T-Mobile merging the decision is very important to Mr. Son and Sprint. If the merger is to go through it would give Sprint and additional 50 million customers, and potential give Sprint the opportunity to compete with Verizon and ATT. The answer is yes. †¢ Do I have sufficient information to make a high quality decision? Mr. Son being a successfulShow MoreRelatedNet Present Value of T-Mobiles Discount Rate1421 Words   |  6 PagesPart I: The formula for net present value is as follows: INCLUDEPICTURE http://i.investopedia.com/inv/dictionary/terms/NPV.gif * MERGEFORMATINET   Source: Investopedia (2012) The net present value of this project if T-Mobiles discount rate is 4% is therefore as follows: Year 0 1 2 3 4 5 CF -3219000 350000 939000 1122000 500000 400000 PV -3219000 336538.5 868158.3 997453.9 427402.1 328770.8 NPV -260676 d 4% Based on thisRead MoreMarketing Strategy Of Sprint And T Mobile996 Words   |  4 PagesSprint and T-Mobile are both owned both majority owned by large international telecommunications groups. Sprint is majority owned by SoftBank in Japan, and T-Mobile is majority owned by Deutsche Telekom of Germany (Gelles De La Merced, 5 Jun 2014). The decision to end talks to merge Sprint and T-Mobile companies was a tough decision for Masayoshi Son. 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