For the past few days, rumors have been swirling that Sprint wants to merge with Charter Communications. If the two got together, it could be a major deal, combining the wireless and cable industries in a big, new way. But now reports from Bloomberg and the Wall Street Journal suggest that Charter, the nation’s second-biggest cable company, simply isn’t interested in a deal.
There are indications that Sprint and its parent company, Softbank, aren’t yet ready to give up on Charter. But why is Sprint so seeking a tie-up with the cable giant in the first place, and why doesn’t Charter want to partner with America’s fourth-biggest cellphone carrier? Below, we’ve laid out everything you need to know about the latest consolidation rumors.
What would a Sprint-Charter merger mean for me?
It could mean new bundles of services. You might, for example, be able to buy Sprint’s wireless service together with Charter’s cable service. And much like AT&T has done with DirecTV, it’s possible Sprint could seek to put Charter’s video content on mobile to attract and retain customers.
How would this help Sprint?
Sprint has been struggling to stay competitive against the likes of Verizon, AT&T and T-Mobile for some time now. The company has failed to invest in its network, analysts say, resulting in a poorer experience for consumers and subscriber losses that have further weakened Sprint’s ability to adapt to a fast-changing industry.
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