T-Mobile US has completed its long-pending acquisition of Sprint, the company said on Wednesday morning. The deal combines the previously third- and fourth-largest U.S. wireless carriers, after Verizon Communications (ticker: VZ) and AT&T (T). In a move mandated by federal regulators, it also equips Dish Network (DISH) with a collection of assets meant to allow it to become a fourth nationwide competitor.
With the closing of the deal, old T-Mobile’s (TMUS) COO Mike Sievert will become CEO of New T-Mobile, succeeding John Legere. Sievert will oversee the complex process of combining T-Mobile and Sprint’s networks, retail operations, and customer bases. Magenta-wearing Legere had previously said he planned to remain CEO until his contract expired on April 30. He’ll remain on T-Mobile’s board of directors until June 2020.
The two companies had a combined $77.5 billion in revenue in their past four reported quarters, and boasted over 140 million subscribers at the end of 2019.
T-Mobile has been the U.S. wireless industry’s best performer over recent years, chipping away at its larger rivals with its “un-carrier” strategy, which it says it plans to double down on as New T-Mobile. It’s taken market share thanks to lower prices and improving network quality. Sprint, meanwhile, has struggled, losing money and with a very high debt load relative to its market value.
In spring 2018, T-Mobile bid to acquire Sprint, seeking greater scale, new wireless spectrum holdings, and cost synergies it said would put the company in a stronger position for the 5G era. Federal regulators at the Federal Communications Commission and Justice Department supported the deal last summer after the companies agreed to divest some wireless spectrum licenses, cell towers, and Sprint’s Boost Mobile prepaid brand to Dish. The satellite-TV provider will also be able to use New T-Mobile’s network for three years, as it deploys its own 5G infrastructure.
Newsletter Sign-up
A coalition of state attorneys general saw those remedies as insufficient to maintain adequate competition in the U.S. wireless market, and argued that the merger will lead to higher prices for consumers. The state attorneys general took the companies to court to block the merger, but a judge ruled against them in February. A judgment by the California Public Utilities Commission is pending—with a vote scheduled for April 16—as is a ruling in a Tunney Act review of New T-Mobile’s settlement with the DOJ.
The companies revised the terms of their deal in late February, and again before Wednesday’s closing. Shareholders will now receive one T-Mobile share for each 9.75 Sprint shares they hold, equal to the original 9.75 exchange ratio agreed in 2018. Sprint’s majority owner SoftBank (SFTBY) will surrender almost 49 T-Mobile shares it acquires in the deal, making its exchange ratio 11.31 Sprint shares per T-Mobile share. Old T-Mobile’s controlling shareholder Deutsche Telekom (DTEGY) will own about 43% of New T-Mobile.
Barron’s called T-Mobile stock a winner earlier this year. Shares were up 2.1% on Wednesday morning, to $85.65, versus a 3% drop for the S&P 500.
Write to Nicholas Jasinski at nicholas.jasinski@barrons.com
"easy" - Google News
April 01, 2020 at 09:53PM
https://ift.tt/3dNF1eQ
T-Mobile US Finally Completes Its Sprint Acquisition. It Wasn’t Easy. - Barron's
"easy" - Google News
https://ift.tt/38z63U6
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "T-Mobile US Finally Completes Its Sprint Acquisition. It Wasn’t Easy. - Barron's"
Post a Comment