(A) It's a 4-to-3 merger that will lower competition and increase markups.
(B) The new merged entity will be able to take on the industry leaders ATT and Verizon.
(A) and (B) make clear predictions.
(B) predicts the merger is bad news for ATT and Verizon's shareholders.
The news leaked at 6pm that the judge would approve the merger. Sprint went up 60% as expected.
Let's test the theories.
And just a reminder: these firms invest 0% of the excess profits.