While all heads turned when it was stated that Leap Wireless was going to join hands together with MetroPCS, The Wall Street Journal has published a report stating that an agreement had not been reached via the two powerhouses. This puts an end to speculation that a merger between MetroPCS and Leap Wireless would have been able to benefit customers through much lower costs. For the last 5 months there were rumors of a possible merger between the two; however The Wall Street Journal has claimed that sentiments for the need of particular merger related synergies required by the major investors of Leap were not shared by MetroPCS who deemed the synergies to be worth less. At the same time, certain investments that were made earlier by Leap for broadband technology were also not being supported by MetroPCS. One of the main reasons as to why MetroPCS was not in a great hurry to close the deal was because they knew there were no other possible suitors for Leap. In fact, most analysts and other bankers also saw the possible merger as being perfectly compatible, as a merger between the two would result in benefits for both. At the same time, since there were many similarities shared by MetroPCS and Leap, the effectiveness of the merger would be perfect. With Leap Wireless being the seventh largest wireless provider in the country and MetroPCS the fifth largest carrier, the merger would have been able to leapfrog them higher up. The only problem with the entire situation was that MetroPCS Communications and Leap Wireless International were unable to see eye to eye.
While for the last four years Wall Street analysts stated that a possible merger was inevitable, since talks opened up in February, they were more than certain that negotiations would go through without a glitch for either party.