Sprint Approached Charter About Possible Merger (Report)
The proposed transaction would leave SoftBank in control of the combined entity.
Sprint and Charter Communications are discussing a potential merger in a complicated transaction that would leave SoftBank in control of the combined entity, The Wall Street Journal reported Friday.
Citing sources familiar with the negotiations, the report said Sprint would abandon an effort to merge with T-Mobile US and instead join Charter. Sprint is controlled by SoftBank, the Japanese finance, technology and media company.
Later on Friday, Bloomberg reported that while Sprint had proposed a deal, Charter rebuffed the offer. The news, though, had shares of Sprint rising 6 percent after the closing bell. Sprint is a $33 billion company, while Charter's market cap is $113 billion.
Sprint had previously held talks with Warren Buffett's Berkshire Hathaway for an infusion of funding, and also with John Malone's Liberty Media, Reuters reported.
Sprint is also nearing the end of a two-month period of exclusive negotiations with Charter and Comcast over a wireless partnership, and it could resume merger talks with T-Mobile US soon, according to Reuters.