According to a report from Bloomberg, T-Mobile's parent company, Deutsche Telekom, is reportedly in talks with MetroPCS about merging T-Mobile with the carrier. T-Mobile, the fourth largest carrier in the United States, has been struggling over the past couple of years, and has been looking for options ever since its acquisition by AT&T fell through.
Other options reportedly include an outright sale of the company.
Deutsche Telekom is considering a stock-swap transaction that would give the German company control over the combined entity, which would be publicly listed, said two of the people, who declined to be identified because the talks are private. Other options include an initial public offering or an outright sale of T-Mobile USA, the people said, adding that Deutsche Telekom is also in talks with other companies. MetroPCS shares jumped 14 percent in New York trading yesterday.