Sprint has managed to kill another mobile merger. After furiously fighting to kill the AT&T/T-Mobile merger, Sprint has botched its own acquisition of MetroPCS. According to CNBC’s David Faber, Sprint’s Board of Directors killed the $8 billion merger “hours” before a deal was to be announced.
$S Sprint was hours away from buying PCS for $8b when deal vetoed by Sprint board.—
DAVID FABER (@DavidFaberCNBC) February 24, 2012
Faber went on to say that Sprint CEO Dan Hesse was in favor of the merger. It is not clear yet on how this will affect Hesse’s job security, but any time a board of directors goes against the CEO, it’s never a good sign.
Sprint has been stuck in third place behind Verizon and AT&T, in terms of the number of mobile subscribers for years. It is unclear if the mobile provider had plans to use MetroPCS’ LTE network to expand the their own — though this would have been difficult, as the networks run on different frequencies. Sprint’s own LTE network is severely behind those of Verizon and AT&T, due to their ill-fated choice of WiMAX back in 2008.
Sprint currently has 55 million subscribers, compared to the 9 million of MetroPCS.
Sprint declined to comment.