T-Mobile, MetroPCS to merge in $1.5bn deal

[YosemiteSam]

Definitely happy that the T-Mobile / AT&T deal was blocked. This is probably a much better option.

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T-Mobile USA and MetroPCS will merge in a multi-million-dollar deal to create "the leading value carrier in the U.S. wireless marketplace," both companies announced this morning.

The deal is structured as a recapitalization, in which MetroPCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders and acquire all of T-Mobile's capital stock by issuing to Deutsche Telekom, its parent company, 74 percent of MetroPCS' common stock. (An additional wrinkle: the new company will have about $15 billion in debt.)

In other words, 26 percent of the new company will be owned by MetroPCS shareholders and 74 percent will be owned by Deutsche Telekom -- a rebuff to rumors that the German company was trying to exit the U.S. market.

The new company will keep the T-Mobile name, locate its headquarters in Bellevue, Wash. (with a sizeable presence in Dallas, Texas) and continue trading on the New York Stock Exchange. T-Mobile president and CEO John Legere will keep his title for the new combined company, which plans to operate the two brands as separate customer units led by T-Mobile's Jim Alling and MetroPCS' Thomas Keys, respectively.

Complete Story

 

[a_minimalist]

Definitely happy that the T-Mobile / AT&T deal was blocked. This is probably a much better option.

================================

T-Mobile USA and MetroPCS will merge in a multi-million-dollar deal to create "the leading value carrier in the U.S. wireless marketplace," both companies announced this morning.

The deal is structured as a recapitalization, in which MetroPCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders and acquire all of T-Mobile's capital stock by issuing to Deutsche Telekom, its parent company, 74 percent of MetroPCS' common stock. (An additional wrinkle: the new company will have about $15 billion in debt.)

In other words, 26 percent of the new company will be owned by MetroPCS shareholders and 74 percent will be owned by Deutsche Telekom -- a rebuff to rumors that the German company was trying to exit the U.S. market.

The new company will keep the T-Mobile name, locate its headquarters in Bellevue, Wash. (with a sizeable presence in Dallas, Texas) and continue trading on the New York Stock Exchange. T-Mobile president and CEO John Legere will keep his title for the new combined company, which plans to operate the two brands as separate customer units led by T-Mobile's Jim Alling and MetroPCS' Thomas Keys, respectively.

Complete Story

That's pretty sweet. I'm with you and glad to see this rather than the other proposed merger.

 

[Duane]

I'm really glad about this. T-Mobile is one of the few companies that's got decent market share and low rate plans.

 

[NorthTexan95]

T-Mobile has been desperate for someone to buy them or work with them. With no true 4G infrastructure cheap is the only way they can compete.

 

[RS12]

Dumped Metro 6 mths ago because the reception was lousy and I'm in So Cal. Switched to Boost which is on Sprint network, same value but rarely drop calls.

 

[Kangaroo]

T-Mobile has been desperate for someone to buy them or work with them. With no true 4G infrastructure cheap is the only way they can compete.

TMobile is spending 4 billion to build out their network this and next year thanks to AT&T. This allows TMobile to get out from under Deutsche Telekom thumb who ran the company in the ground after they decide they wanted out of the American Market.

Yet then we have the Sprint Nextel disaster and since these guys run different Networks will it really work

 

[Cowboy Brian]

So they are taking the MetroPCS brand?

of T-Mobile's capital stock by issuing to Deutsche Telekom, its parent company, 74 percent of MetroPCS' common stock

Once they get their financial house in order the telecommunications market should be able to become the big 3 instead of just VZW/ATT and then distant tmobile, sprint etc;.. This should have enough firepower to compete.

 

[Kangaroo]

So they are taking the MetroPCS brand?


Once they get their financial house in order the telecommunications market should be able to become the big 3 instead of just VZW/ATT and then distant tmobile, sprint etc;.. This should have enough firepower to compete.

They are keeping the Tmobile name but the Smaller company is buying the bigger company. TMobile new CEO stays the CEO but Metro's CFO takes over as CFO according to articles. They did not say how the Board layout would shake out.

Last time i saw that was Waste Management bought BFI and Waste Management almost chocked on that but managed to sell off enough stuff to stay afloat and recover.

Still trying to figure out out how they are going to maintain 3 Data types they will eventually all be LTE but that will take time to convert and how to get people on prepaid to convert not like you want to give them free phones to not stay.

 

[NorthTexan95]

TMobile is spending 4 billion to build out their network this and next year thanks to AT&T. This allows TMobile to get out from under Deutsche Telekom thumb who ran the company in the ground after they decide they wanted out of the American Market.

Yet then we have the Sprint Nextel disaster and since these guys run different Networks will it really work

How did they get $4 billion? Their merger with ATT was nixed by the government. Did I miss something?

 

[YosemiteSam]

How did they get $4 billion? Their merger with ATT was nixed by the government. Did I miss something?

AT&T guaranteed T-Mobile $4B in the deal even if it fell through. I believe the original deal was worth $12B. AT&T was so sure that it would go through that they agreed to T-Mobiles $4B guarantee.

That was like a sucker punch. :laugh2:

 

[NorthTexan95]

AT&T guaranteed T-Mobile $4B in the deal even if it fell through. I believe the original deal was worth $12B. AT&T was so sure that it would go through that they agreed to T-Mobiles $4B guarantee.

That was like a sucker punch. :laugh2:

AT&T was very stupid. Every article I read questioned whether it would be approved by the government from the get go.

Well, maybe T Mobile will survive after all.