"SoftBank Group plans to break off negotiations on a merger between subsidiary Sprint and T-Mobile US amid a failure to agree on ownership of the combined entity", the Japanese financial news agency said.
T-Mobile last week elected to skip its quarterly earnings call with investors, fueling speculation that a merger with rival wireless provider Sprint was imminent. The companies had been ironing out final terms of the merger in the hopes of announcing a deal in mid- to late November, people familiar with the matter told Bloomberg earlier this month.
Deutsche Telekom allegedly insisted on a controlling stake in the new firm. But SoftBank's board affirmed at a meeting Friday that the company would not give up control.
T-Mobile ranks third among USA wireless carriers by subscribers, followed by Sprint in fourth place.
As previously mentioned, the deal would have placed Deutsche Telekom as the majority owner of the combined carrier.
SoftBank and Deutsche Telekom don't trade on Wall Street, but SoftBank stock was down three percent on foreign markets.
Apart from offering free Netflix streaming to subscribers (as T-Mobile has done), the two second-tier telcos have not made their presence felt in streaming video.