Deutsche Telekom has entered early-stage talks to merge with T-Mobile US, its majority-owned American subsidiary, according to sources cited by Yahoo Finance. The talks are preliminary, and no terms, valuation, or timeline have been disclosed.

Deutsche Telekom already holds a controlling stake in T-Mobile US, the second-largest mobile operator in the United States by subscriber count. A full merger would consolidate the remaining minority shares into the German parent, creating a single listed entity spanning the European and North American mobile markets.

The reported discussions come after years in which Deutsche Telekom has steadily increased its ownership of T-Mobile US. The American unit's growth — driven by the 2020 acquisition of Sprint and subsequent 5G network integration — has made it the largest contributor to the group's revenue and earnings, far outweighing Deutsche Telekom's European operations.

T-Mobile US built its current market position through a rapid standalone 5G rollout on mid-band spectrum acquired in auctions and through the Sprint deal. That expansion transformed the operator from a discount challenger into a capacity leader in the US market and, in turn, lifted the valuation of Deutsche Telekom's holding well above that of the parent itself.

A merger of the two companies would rank among the largest telecom transactions on record. It would also require regulatory clearance on both sides of the Atlantic: US securities and communications regulators for the structure of the combined entity, and German and EU authorities for the effects on Deutsche Telekom's listing and governance.

Because Deutsche Telekom already consolidates T-Mobile US financially and controls its board, a deal would not change competitive conditions in either market. The transaction would primarily affect ownership structure, listing venue, and the free float available to outside investors — questions that typically determine whether such tie-ups proceed.

Neither Deutsche Telekom nor T-Mobile US has commented publicly on the reported talks, and the sources provided no indication of when a formal proposal might emerge. Early-stage discussions of this kind frequently end without an agreement.