T-Mobile parent expects a $1 billion payout if Sprint merger falls through

Not a bad deal

It was rumored early in May that Sprint's purchase of T-Mobile is "dead," and if that's the case, then T-Mobile parent company Deutsche Telekom might stand to make a few bucks.

Specifically the German company wants $1 billion or more if the deal falls through because of the FCC or otherwise, The Wall Street Journal reported.

Deutsche Telekom owns more than two thirds of T-Mobile, and it's reportedly determined to keep the carrier intact should the merger with Sprint actually go through.

In fact it seems Deutsche and T-Mobile may ultimately wind up calling the shots, according to this report. And naturally they have a plan in place just in case.

Large and in charge

Deutsche Telekom is reportedly determined that T-Mobile should retain its brand and its executives, according to the Journal.

That means T-Mobile could operate as Sprint's parent company, or the Sprint name could go away altogether.

Current T-Mobile CEO John Legere will likely remain in charge if the deal progresses, according to the report.

Just walk away

And besides the possibility of the FCC intervening, there's reportedly at least one other major obstacle: Sprint and T-Mobile combined might have too much spectrum for one company.

They may have to sell some off, or cancel the deal altogether if that option proves unattractive.

All those concerns will be moot, though, if the deal falls through.

As Slashgear points out, that's exactly what happened with AT&T's proposed purchase of T-Mobile in 2011 - and T-Mobile wound up walking away with $4 billion.