T-Mobile and Sprint are popping after reportedly closing in on a merger deal (TMUS, S)

john legere t mobile T-Mobile

Sprint and T-Mobile are reportedly moving closer to a merger, and both stocks are rising on the news.

T-Mobile is up 1.45% to $64.32 in early trading on Friday, and Sprint is trading 4.86% higher at $8.42.

On Friday, Reuters reported that T-Mobile is closer to agreeing to the terms of the deal, a step the report calls a "major breakthrough." A possible deal is expected by the end of October, as the two companies would go through a period of due diligence before finalizing the deal. The deal is not final and could still fall through.

The two companies rose earlier this week on news of the possible merger. T-Mobile's owner, Deutsche Telekom, would own a majority stake in the new company and the merger would be a stock-for-stock deal, according to a CNBC report. Talks between the two companies have been off-and-on for years.

T-Mobile and Sprint are currently the third- and fourth-largest wireless providers in the US. The combined company would reportedly have a base of 130 million subscribers, and a merger would allow the combined company to massively cut costs. Analysts have said that revenues from a combined company could top $70 billion, Reuters reports.

John Legere, the current CEO of T-Mobile, is credited with improving T-Mobile recently and would reportedly lead the new company.