T-Mobile, Sprint break off merger talks

T-Mobile said Saturday it has ended merger talks with Sprint after being unable to come to a satisfactory deal.

"The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders, T-Mobile US CEO John Legere said in a statement. “However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance."

"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination," Sprint CEO Marcelo Claure said in a statement. "However, we have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth."

Why it matters: The No. 3 and No. 4 wireless carriers had been widely expected to combine in an effort to better compete against far larger AT&T and Verizon.