Explain how the article below is connected to the material in cooperative strate

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Explain how the article below is connected to the material in cooperative strategy and corporate goverance

Explain what other businesses, or your employer, could learn from the key point(s) in this article.

Next Hurdle for T-Mobile-Sprint Merger: Trump Administration

It took months of discussions spanning three continents and four public company boards before T-Mobile US Inc. TMUS +0.02% and Sprint Corp. signed the merger agreement that had eluded them for years.

Now comes the hard part.

The country’s No. 3 and No. 4 wireless carriers by subscribers must convince U.S. regulators and antitrust enforcers that their $26 billion union won’t hurt industry competition. It is a tough hurdle to clear. The companies aborted their last merger attempt in 2014 after government officials told executives they weren’t likely to approve the deal.

The market’s initial reaction showed investors’ worries about the risk of another thwarted merger, even under a Republican administration. Sprint shares fell 14% to $5.61 Monday, a discount to the price implied by the all-stock deal. Based on T-Mobile’s share price, which fell 6.2% on Monday, Sprint holders would get stock worth $6.21 for each Sprint share.

The deal would leave the U.S. with three national wireless network operators, a scenario that Obama administration regulators opposed. Antitrust experts have debated whether a stronger third player would drive more competition than a market with two giants— AT&T Inc. and Verizon Communications Inc. —and two smaller rivals, T-Mobile and Sprint, that have been driving down prices in recent years.

?The would-be partners said they don’t expect the proposed transaction to close until next year. It is subject to review by both the Federal Communications Commission, the country’s main telecom regulator, and antitrust officials at?the Justice Department. State officials will also vet the deal.

Sprint and T-Mobile do have some new arguments they lacked a few years ago. For one, they point out that there are more choices for wireless phone service. Cable companies like Comcast Corp. and Altice USA Inc. now sell their customers cellphone plans that compete for wireless customers, though they still rely on Sprint and Verizon to run their cellular network.

To make their case for the combination, the companies also highlighted plans to speed the rollout of fifth-generation, or 5G, networks in the U.S. and pledged to create U.S. jobs, two themes that align with Trump administration goals.

“We think the rise in the government interest in creating an attractive investment climate for 5G deployment improves the odds for the deal’s approval,” New Street Research analyst Blair Levin wrote in a recent note to clients.

That argument could factor into the FCC’s review because the agency is allowed to consider a deal’s public-interest merits rather than focusing solely on its competitive effects, according to former FCC commissioner Robert McDowell, a partner at law firm Cooley LLP, which has advised T-Mobile on the merger.

The five-member FCC has three Republicans and is now led by a GOP chairman, Ajit Pai, ?who has relaxed some regulations on the industry.

“They realize that the clock is ticking and if they’re ever going to get the deal approved, they need it now,” Mr. McDowell said of the companies.

There are other signs Mr. Pai could hear out the chief executives’ arguments when they visit Washington this week. The FCC’s annual report last year found the wireless market had “effective competition” for the first time since 2009, a move that could help clear a path for the companies.

Neither the race with China to deploy 5G nor U.S. jobs would be relevant in a Justice Department antitrust review, in which the government studies whether a deal would lead to higher prices or otherwise harm competition.

AT&T declined to comment, while Verizon said it is focused on building its network “not just a proposal that may or may not happen in the next couple of years.” ?

In that regard, the merger review will provide another major test for the Trump administration and its Justice Department’s antitrust chief, Makan Delrahim. Mr. Delrahim has been more aggressive on enforcement than officials in other recent Republican administrations, suing to block AT&T’s planned acquisition of Time Warner Inc.

“The odds of approval are not great but neither are the costs of trying,” Mr. Levin said. “Meanwhile, the benefits are great. So we think it is worth the companies’ time and effort to try.”

https://www.wsj.com/articles/next-hurdle-for-t-mobile-sprint-merger-trump-administration-1525101983

Explanation / Answer

Cooperative strategy is the approach followed by 2 or more firms that work together in cooperation and harmony to achieve a common objective. Corporate governance on the other hand, is the set of rules, regulations, business processes and compliances, which help in controlling the company and choosing its direction course.

In the given article, there is a clear case of cooperation strategy. First, 2 small wireless operators are entering into a cooperation strategy to become the country’s third largest wireless network company. Both T-Mobile US as well as Sprint Corp. are entering into the merger with the objective that one day, the merged organization will rule the wireless network sector of the States. There is another cooperation strategy, which can be witnesses between the merged company and the Trump Government. Both the entities are trying to enter into a mutual cooperation strategy where the Trump Government would sanction their deal to run the cellular network. The merged company, in return would generate job opportunities in the US and will speedily rollout 5G networks in USA.

This article also highlights the principles of corporate governance. Initially Obama Government acted as the corporate governance for the wireless network industry as they had halted the sanction of merger of the two companies, as that would have resulted in 3 big players in the wireless network industry.

The key takeaways from this article are:

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