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Mergers

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Arizona Christian University
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Running Head: T-MOBILE AND SPRINT MERGER 1
T-Mobile and Sprint Merger
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T-MOBILE AND SPRINT MERGER 2
Question 1
Mergers are very profitable, especially to companies struggling with low sales or facing a
risk of collapsing. A merger is the union of two or more companies into a single business unit as
it is well known. The merger of these two telecommunication companies, whose market share
was huge in the United States, brought a new dawn to the new companies and the shareholders.
There are many benefits associated with mergers, but most focus on weaker companies' profits
and survival.
The two mobile network providers aimed at reducing operational costs by sharing
communication masts and reduced taxes charged previously charged to each were now charged
to the new T-Mobile, increasing company profits margins. Sprint seized to operate under its
name and acquired T- Mobile merging all employees and reducing operational costs. There was
an increase in network towers, engineers, and bandwidth as those previously belonging to each
company now belong to one new entity.
The merger led to increased market share for the new company as it acquired the
customers of Sprint Company. The acquisition of Sprints Company's existing customers
increased the T- Mobile Company's customer base, a move that automatically points to more
sales. Acquisitions and mergers are preferable as many people usually lay their trust in the new
offers that are used to acquire more customers.
During the official ceremony to announce the merger, the new company's top management
announced that it would improve its network speed of 5G. It's accessed by 99% of Americans, a
speed so fast that downloading and streaming online would be fast(Rideout,2020). This move
attracted more customers to seek the company's services as the offer was very favorable to the

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Running Head: T-MOBILE AND SPRINT MERGER 1 T-Mobile and Sprint Merger Student Name Course Name Institution Date T-MOBILE AND SPRINT MERGER 2 Question 1 Mergers are very profitable, especially to companies struggling with low sales or facing a risk of collapsing. A merger is the union of two or more companies into a single business unit as it is well known. The merger of these two telecommunication companies, whose market share was huge in the United States, brought a new dawn to the new companies and the shareholders. There are many benefits associated with mergers, but most focus on weaker companies' profits and survival. The two mobile network providers aimed at reducing operational costs by sharing communication masts and reduced taxes charged previously charged to each were now charged to the new T-Mobile, increasing company profits margins. Sprint seized to operate under its name and acquired T- Mobile merging all employees and reducing operational costs. There was an increase in network towers, engineers, and bandwidth as those previously belonging to each company now belong to one new entity. The merger led to increased market share for the new company as it acquired t ...
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