SoftBank Corporation and T-Mobile's owner Deutsche Telekom AG (DTE) are in direct talks about a potential merger of Sprint Corp and T-Mobile US Inc.

According to Bloomberg, SoftBank is trying to finance this deal by preparing as much cash as possible for Deutsche Telekom is asking for an all-cash offer for T-Mobile. President and founder of SoftBank, Masayoshi Son is looking to borrow from banks with a total amount of $20 billion from these banks.

Son was assured that banks will be available in financing for a deal. However, the sources said that it may still take months for the merger to happen due to unresolved conflicts. This includes the amount of cash and stock SoftBank will pay for Deutsche Telekom's 67 percent stake in T-Mobile and the integration of Sprint and T-Mobile network.

A better chance in long-term success against AT&T Inc. and Verizon Communications Inc. are just some of the advantages in combining Sprint and T-Mobile. Son will be the decision maker whether the deal will be pushed or not though Sprint's management is not in control of the deal talks. According to Sprint Chief Executive Officer Dan Hesse, he knew that Son wanted to acquire T-Mobile when he agreed to sell SoftBank the majority of the company.

An analyst at New Street Research, Jonathan Chaplin said that the second-largest satellite TV provider, Dish Network Corp., could facilitate a combination of Sprint and T-Mobile.

 "The companies could argue that this improves competition. Sprint and T-Mobile, who have both been disruptive, would now have comparable scale to Verizon and AT&T, allowing them to price even more aggressively. In addition, by passing on low network costs to Dish, they would enable Dish to price their service aggressively and take share also," Chaplin said to Bloomberg.

Bob Toevs, Dish spokesman declined to comment on the matter.