Sprint and T-Mobile may have reached a major breakthrough, as the wireless carriers hammer out merger talks.
A merger between Sprint, the fourth-largest wireless carrier in the USA, and T-Mobile, the third largest, would require approval from anti-trust regulators.
Sprint owner SoftBank of Japan would "own 40 to 50 percent of the combined company, while T-Mobile majority owner Deutsche Telekom will own a majority stake, two of the sources said", according to Reuters.
A deal may be finalized by October, but talks could reportedly still fall through. The deal would also face the usual regulatory scrutiny faced by any merger.
If a deal were to be confirmed, it could create business with over 130 million subscribers.
Neither Sprint nor T-Mobile would comment.
Sprint stock price jumped up almost 6 percent on Friday on reports of the possible deal; T-Mobile stocks were up marginally. T-Mobile CEO John Legere would lead the combined company, according to Reuters.
Michael Finneran, industry analyst and Channel Partners contributor, said T-Mobile and Sprint are gambling big on getting government approval for the merger, an approval that was denied under the prior administration.
Other possible indications of the prospective deal include T-Mobile and Sprint seeing the political and legal climate as friendly, or more hands-off.