T-Mobile and Sprint Announce Merger

T-Mobile and Sprint are combining in a deal that would create a bigger No. 3 cellular carrier in the U.S., but could also signal the end of an era of aggressive competition for customers. After years of negotiations T-Mobile and Sprint finally agreed to a massive telecom merger.

The merger, in an all-stock deal announced Sunday, will create a company using the name T-Mobile. It would value Sprint at $59 billion and the combined companies at $146 billion, including debt.

The agreement would leave just three major wireless carriers in the United States and must clear antitrust regulators. The combined company, which will take on the name T-Mobile, would be positioned as a fierce competitor to Verizon and AT&T.

T-Mobile CEO John Legere, who will head the merged company, said on a conference call Sunday that the firm plans to deliver “the highest capacity network in US history.”

He said the company will hire thousands of people in a bid to create a nationwide network that will position the United States as the leader in providing 5G connectivity.

The move combines the third and fourth largest wireless service providers in the nation. Sprint was valued at $26 billion based on its last closing price, and T-Mobile was last valued at $55 billion. The deal values Sprint near its latest closing share price of $6.50.

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I’m excited to announce that @TMobile & @Sprint
have reached an agreement to come together to form a new company – a larger, stronger competitor that will be a force for positive change for all US consumers and businesses! Watch this & click through for details.

— John Legere (@JohnLegere) April 29, 2018

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http://money.cnn.com/2018/04/29/news/companies/t-mobile-sprint-merger/index.html

Cover photo:

https://arstechnica.com/information-technology/2017/11/t-mobile-and-sprint-finally-officially-say-they-definitely-wont-merge/