T-Mobile and MetroPCS $1.5 Billion Dollar Merger Officially Moves Forward

[dgstorm]

Here's an example of a business deal moving forward quickly. Just yesterday there was word that Deutsche Telekom, the parent company of T-Mobile was in talks with MetroPCS to merge the two U.S. networks together. This morning we already have word that a $1.5 Billion agreement has been agreed to and is ready to proceed forward. Supposedly, the new merged companies will be called T-Mobile and will still be run by T-Mobile Chief Executive John Legere. Here's a quote with some additional detail,

T-Mobile says that the merger 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 (approximately $4.09 per share prior to the reverse stock split) and acquire all of T-Mobile’s capital stock by issuing to Deutsche Telekom 74% of MetroPCS’ common stock on a pro forma basis.”

This is a deal that is much less likely to be halted by the Federal government like what happened when AT&T tried the same thing.

Source: BGR

 

[liftedplane]

hopefully this means better coverage for t-mobile and even more pressure on vzw

 

[johnomaz]

I think its a good merger. Two smallish companies will become a not as big as ATT/Veriztion but big enough to give them some competition.

 

[pc747]

hopefully this means better coverage for t-mobile and even more pressure on vzw

Sadly no...we will need another alltel for that to happen.
[video=youtube;IlBxHG4vfKw]http://www.youtube.com/watch?v=IlBxHG4vfKw&feature=related[/video]

 

[pc747]

alltel had some cool commercials back in the day

[video=youtube;E1h0KaaOkFM]http://www.youtube.com/watch?v=E1h0KaaOkFM&feature=related[/video]

 

[liftedplane]

Sadly no...we will need another alltel for that to happen.
[video=youtube;IlBxHG4vfKw]http://www.youtube.com/watch?v=IlBxHG4vfKw&feature=related[/video]

and yet verizon bought them out right? we will need someone that can truly compete, it'll happen someday (comeon google)

 

[tgyberg]

Yes, please Google..save us! Not that I don't love giving vzw $98 per month for basically just texting.

 

[geoff5093]

Seeing as how one is GSM and the other is CDMA, I doubt you will see either company have improved coverage for a while, they may just share LTE and keep their 2G/3G networks separate.

 

[akhenax]

Yeah, I thought about this happening when the whole share plan came out from Verizon. I wanted to leave Verizon, to go to Metro PCS, but I was thinking that they would have poor service where I live. Then I thought about T-Mobile, but there 4G speeds are no where near Verizon.

I said that I wish T-Mobile would just buy Metro PCS and give Verizon customers a real alternative.

Please excuse me while I go play the lottery. :icon_eek: