T-Mobile and Sprint are popping after reportedly closing in on a merger deal

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.

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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.

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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.

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