Victor Marrero, who happens to be a U.S. District Court Judge, is being faced with a massive decision. This judge is the one to decide on whether or not the merger between two business giants will go through.
About the merger
The two seeking a merger are T-Mobile Us Inc (NASDAQ:TMUS) and Sprint Corp (NYSE:S).
The plaintiffs took the matter to court, wanting it to decline this merger. These are 14 attorneys general coming from Washington D.C and some 13 states.
These attorneys have launched their arguments before the judge outlining the reasons why they want the merger shut down. The major reason they are giving is that it will compromise service delivery by encouraging a monopoly. The customers will be on the losing end according to these parties if the deal goes through. They are pleading with the judge to overturn the deal since it is the only way to protect customers from the resulting high prices.
According to the plaintiffs, allowing the merger is going to bring down the major U.S. carriers by a 25% margin.
The defense side has argued out, showing the judge that disallowing the merger would still pose serious consequences for customers. Ruling against the merger has its drawbacks. Sprint will have to raise its prices to survive, according to the defendants. This would eventually lead to the disappearance of Sprint anyway.
Terms of the ruling
How can this judge then rule in favor of the defendants? He should establish that indeed DISH Network Corp (NASDAQ:DISH) has what it takes to replace Sprint. In other words, he needs to be sure that the company got what it takes to become the nation’s fourth-largest wireless company.
Reports indicate that Dish has been holding several board meetings where it has been discussing setting up a standalone 5G network. The same reports indicate that Dish is considering striking a business partnership with some of the big names globally. Some of these may include Alphabet Inc (NASDAQ:GOOGL), Amazon.com, Inc (NASDAQ:AMZN) or Apple Inc (NASDAQ:AAPL).