T-Mobile and Sprint (Finally) Agree to Merge

By Paul Riegler on 29 April 2018
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DSC_303 (1)T-Mobile and Sprint, the nation’s third and fourth largest mobile operators respectively, announced on Sunday that they had reached a deal to merge.

The move will create the nation’s second largest mobile operator, behind Verizon Wireless and ahead of AT&T.

The two, which have repeatedly tried to merge in recent years, will keep the T-Mobile name. The merged entity will have nearly 100 million subscribers.

Terming the deal “a force for positive change in the U.S. wireless, video, and broadband industries,” the merger will shrink the wireless industry in the United States to three players and it is unclear whether anti-trust regulators will green light the agreement a and allow it to proceed.

The two companies said in a statement that the deal would “provide U.S. consumers and businesses with lower prices, better quality, unmatched value, and greater competition.”

Under the terms of the transaction, Sprint will be valued at about $26.5 billion and T-Mobile at approximately $54.1 billion. After the transaction closes, Deutsche Telekom would own roughly 42% of the combined business and have nine of 14 seats on the new company’s board. SoftBank would own 27% and have four seats. T-Mobile’s current CEO, John Legere, will head the merged company.

(Photo: Accura Media Group)

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