U.S. DOJ in talks with states to win support for T-Mobile, Sprint merger: WSJ

A smartphones with Sprint logo are seen in front of a screen projection of T-mobile logo, in this picture illustration taken April 30, 2018. REUTERS/Dado Ruvic/Illustration

(Reuters) - The U.S. Justice Department is negotiating with state officials to get them to support a planned settlement that would allow T-Mobile US Inc TMUS.O and Sprint Corp S.N to merge by selling assets to Dish Network Corp DISH.O, the Wall Street Journal reported, citing people familiar with the matter.

The DOJ and the companies were not immediately available for comment when contacted by Reuters.

T-Mobile is awaiting approval for its $26.5 billion deal to buy smaller rival Sprint, as the third-largest U.S. wireless carrier seeks scale to compete with bigger rivals such as Verizon Communications Inc VZ.N and AT&T Inc T.N.

T-Mobile on Thursday added more net new phone subscribers who pay a monthly bill than analysts’ estimates in the second quarter.

Reporting by Vibhuti Sharma in Bengaluru: Editing by Sriraj Kalluvila