T-Mobile merger with MetroPCS should close in the second quarter of 2013

T-Mobile merger with MetroPCS should close in the second quarter of 2013
MetroPCS' shares are now a proxy for the merged company

MetroPCS' shares are now a proxy for the merged company

A German newspaper, Boersenzeitung, quotes Deutsche Telekom CFO Timotheus Hoettges as saying that the merger of T-Mobile and MetroPCS would close in the second quarter of 2013. Because MetroPCS is the lone U.S. public company between the (Deutsche Telekom is a German company), the deal is structured as a reverse merger in which the smaller MetroPCS will buy T-Mobile. This means that the value of Metro's shares have become a proxy for the value of the combined company. The current enterprise value of the combination, which measures market cap plus debt, is $6.75 billion.

Meanwhile, a video of an animated T-Mobile CEO John Legere shows the executive saying that this deal will close the gap with Sprint, and in a clever use of rhyme, he says that the merger is not a deal "to survive" but is a deal "to thrive". The executive adds that the combined company will have 42 million customers with $24.8 billion in revenue and $6.3 billion in EBITDA (earnings before taxes, depreciation and amortization). More importantly for customers of the merged company, $4.2 billion in capital expenditures will be made annually. That buys a lot of credibility. The deal also makes T-Mobile more self-reliant and turns Deutsche Telekom's investment in T-Mobile USA into easy to sell shares of stock that can quickly be sold off if needed.

source: Reuters via Phandroid

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6 Comments

1. Izzy_V

Posts: 216; Member since: Jul 07, 2012

"Because MetroPCS is the lone U.S. public company between the (Deutsche Telekom is a German company)," Just an FYI if you want to fix that. It's clear that the "not to survive but to thrive" comment he made was BS. T-Mobile might not be a bad service but everyone knows that MetroPCS is thriving a hell of a lot more than T-Mo. is. That and if the merge does let it catch up to or pass Sprint then I don't know why they would be trying to smokescreen the real intention.

2. cncrim

Posts: 1571; Member since: Aug 15, 2011

Go tmobile, i hope u best.

3. lubba

Posts: 1313; Member since: Jan 17, 2011

Won't make no difference. Be one same company sucking Android's balls. No variety, no flavor. Just a second hand follower company as usual, waiting for another carrier to make it big then follower their footsteps yet always falling behind.

4. meowcenary

Posts: 187; Member since: Apr 13, 2012

Besides RIM, WP, and android what is missing in their resume of phones is the elussive iphone. So how is it sucking your proverbial shriveled up balls? We are the telecommunication comapnys bitchs, we take it in the ass monthly. Variety, flavor, and vying for the dominant position means nothing. The only thing the top four has going is their networks works due to the spectrum they have versus prepaid. If you want your iphone you can secure a unlocked one for T-mobile. Telecomms are a love hate relationship. One day we swear by them and the next we hate them for idiotic reasons and jump ship

5. lsutigers

Posts: 832; Member since: Mar 08, 2009

So Metro is buying T-Mobile? Interesting...I wonder which branding they will ultimately use when the company is integrated. T-Mobile and Metro customers are a different clientele...

6. JVino

Posts: 5; Member since: Feb 26, 2012

T-Metro?

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