Sprint secures $40 billion to finance T-Mobile purchase

After AT&T was unable to get the regulatory approval needed to purchase T-Mobile a few years back and loosing big money in the process, the odds of Sprint being able to seal the deal seem slight. That isn't stopping T-Mobile and Sprint from moving forward with their plans to merge.

Sprint has reportedly secured $40 billion in funding to purchase T-Mobile resulting in the third and fourth largest networks in the country becoming one. Sprint reportedly had talks with eight banks to secure the money needed for the deal. Sprint also had to get funding of around $20 billion from Japanese bank SoftBank and another $20 billion to refinance existing T-Mobile debt.

The total buyout is expected to be worth $50 billion and if completed will gain shareholders in T-Mobile about $40 per share. Sprint and T-Mobile hope that after merger the two carriers, who are both losing money now, will be able to take on Verizon and AT&T in the mobile market.