T-Mobile US Inc. and Sprint Corp. agreed on Sunday to merge in an all-stock transaction, following previous failed attempts to combine the two companies.
Deutsche Telekom, which owns a majority stake in T-Mobile, will control 42% of the new company. SoftBank Group, which is the majority shareholder in Sprint, will control 27% of the company. The remaining 31% will be held by the public. Based on Friday’s closing stock prices, T-Mobile has a market value of $55 billion, while Sprint’s market value is $26 billion.
The new company will be named T-Mobile, with current CEO John Legere remaining in charge, and will be headquartered in Bellevue, Washington, while a second headquarters will be located in Overland Park, Kansas – the current headquarters of Sprint.
By combining, T-Mobile will become the nation’s third-largest mobile carrier service, following Verizon Wireless and AT&T, which rank first and second, respectively.
“This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own,” Legere said in a statement. “As industry lines blur and we enter the 5G era, consumers and businesses need a company with the disruptive culture and capabilities to force positive change on their behalf.”
The merger will create more new jobs than T-Mobile and Sprint would separately, the two companies said in a press release, adding that the new company plans to invest $40 billion in its new network and business in the first three years – 46% more than both spent combined in the past three years.
https://www.foxbusiness.com/markets/t-m ... stock-deal
