T-Mobile and Sprint to merge, create $146 billion company
Staff Writer |
T-Mobile and Sprint announced an agreement Sunday to combine into a new company. The proposed all-stock deal values Sprint at about $59 billion and the combined company at $146 billion, including debt.
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"Only the New T-Mobile will be uniquely able to accelerate the country’s position and quickly deploy a broad and deep nationwide 5G network that will deliver better service and lower prices to consumers across all parts of the U.S.
"We will supercharge the pro-consumer, Un-carrier strategy to bring sustainable competition into the marketplace and create new jobs starting day one.
"As the 5G era accelerates, this consumer obsessed company will deliver innovation that customers demand and bring its disruptive nature to adjacent industries to force change for consumers everywhere," the companies said.
T-Mobile USA CEO John Legere made the announcement in a tweet posting a link to a website further explaining the combination. Deutsche Telekom owns two-thirds of T-Mobile, and will control the newly formed firm.
Legere will be CEO of the combined entity, will keep the T-Mobile name, and have headquarters located in both Bellevue, Wa. and Overland Park, Ks.
The agreement involves T-Mobile exchanging 9.75 Sprint shares per unit of T-Mobile. Deutsche Telekom will own 42% of the combined company, while SoftBank — which controls 85% of Sprint — will own 27%. The remaining 31% will be held by the public.
The all-stock transaction values Sprint at 0.10256 per T-Mobile share, or $6.62 a share, based on T-Mobile's last closing price. That valued Sprint at around $26 billion. T-Mobile had a market value of $55 billion as of Friday's close, and the two companies have roughly $60 billion of combined debt. ■
Predominant upper-level ridging stretching from the Southwest to the southern High Plains will allow for another day of record-breaking heat across parts of Nevada and Arizona today.