T-Mobile, Sprint combine in $26.5 billion merger



After all those years of teasing and flirting, T-Mobile and Sprint are finally getting married. Parental approval is required, of course. The $26.5 billion merger of the nation's third largest and fourth largest carriers will enable the combined company to better compete with Verizon and AT&T, the numbers one and two stateside wireless operators, respectively. The T-Mobile name will be used for the merged firm, and it will be led by T-Mobile's feisty John Legere, who will keep CEO duties. His right hand man, Mike Sievert, will keep the COO title. The chairman of T-Mobile parent Deutsche Bank, Tom Hoettges, will have that role at the merged company. SoftBank CEO Masayoshi Son will join the board. His company owns over 80% of Sprint.

Each Sprint share will be converted into 0.10256 of a T-Mobile share. Based on T-Mobile's Friday close, the transaction values Sprint at $6.62 a share. The stock closed regular NYSE trading at $6.50 on Friday. Deutche Telekom will own 42% of the combined carrier while SoftBank will own 27%. The remaining 31% will remain in public hands.


Both companies say that synergies of as much as $43 billion have been identified, and T-Mobile/Sprint had $74 billion in combined annual revenues last year. Verizon Wireless had $88 billion in revenue during 2017, while AT&T had $71 billion in revenue during the same time period. Based on the number of subscribers, AT&T would still be ahead of the combined T-Mobile/Sprint. At the end of the fourth quarter of last year, Verizon had 150.46 million subscribers followed by AT&T's 141.57 million. The combined T-Mobile/Sprint would have had 126.21 million customers at the end of 2017.

The next step is getting regulatory approval for the transaction and it isn't going to be easy. Outside of the fact that John Legere and Donald Trump had a digital run-in a few years ago, the FCC and DOJ put the kibosh on 2014 talks between the two even before a deal was announced. Last year, T-Mobile and Sprint had the outlines of a deal completed before SoftBank's Son allegedly decided to kill the deal. The executive supposedly was not happy with the percentage of ownership that SoftBank would be left with.

A report from brokerage firm Cowen issued last month revealed that had T-Mobile purchased Sprint last year, it was going to shut down 30% of Sprint's cell sites and employ the latter's high frequency 2.5GHz spectrum coast-to-coast.

source: T-Mobile

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21 Comments

1. Mreveryphone

Posts: 1817; Member since: Apr 22, 2014

Well well well... Let's see what the DOJ has to say about this...

5. audibot

Posts: 605; Member since: Jan 26, 2017

hahaha i year ago i screamed hell no but as long as john is the head of the company i am ok with this becasue they will be using the cdma and 1900 for 5g and 2.5ghz. but the main reason i am ok now with this is because its true comcast and others have entered the wireless market and its no longer the small vs the big.

2. KickRocks

Posts: 270; Member since: Mar 22, 2011

Well, if everything happens like they say or "claim" it will happen in the video, them it should be a good move for T-Mobile. With the spectrum that both companies have, in theory a strong, reliable and robust true 5G network only benefits America and it's customers. If they can keep prices down, it should almost force At&t and Verizon to lower prices to compete. As a T-Mobile customer, I'll be watching this closely

8. libra89

Posts: 2272; Member since: Apr 15, 2016

Yeah this could be very interesting to use such a network.

19. andrewc31394

Posts: 292; Member since: Jun 23, 2012

if they can keep prices down, and what is going to motivate them to keep prices down? these 2 were the cheapest carriers already so what;s to stop them from barely undercutting Verizon and AT&T or even being more expensive for having "true unlimited" now

3. Soundjudgment

Posts: 370; Member since: Oct 10, 2016

*Polishes up the **Welcome SprinT-Mobile** plaques.

6. audibot

Posts: 605; Member since: Jan 26, 2017

the company is new T-mobile sprint name gone

4. jonathanfiuwx

Posts: 180; Member since: Mar 10, 2017

All the talking points are all targeted towards what Trump wants in his talking points. They are going to be approved. I'm curious but here's what I expect may happen. 850 (B26) is going to be used specifically for government service and maybe 1700 to get approval. They will sell service to the government with those bands un tappable for consumers. They may have to divest 700 to att or Verizon Cross technology like Google's phone service will be possible but I'm curious... Did Google know this in advance and shut down Google voice Integration because this was happening?

7. audibot

Posts: 605; Member since: Jan 26, 2017

will the sprint nextel iden used 800 so they already control most of the best out there. just think, what if we got a new iden 700fq push to talk to replace that horrible crap "texting" no more car crashing and people walking into hole in the ground and not looking around, thats my dream PTT for ever

9. Blazers

Posts: 734; Member since: Dec 05, 2011

You are definitely dreaming...PTT isn't coming back, and certainly not with a dedicated band.

10. Neoberry99

Posts: 69; Member since: Jun 30, 2015

Hey its nothing wrong dreaming

11. Neoberry99

Posts: 69; Member since: Jun 30, 2015

I miss PTT

12. zennacko unregistered

Bring back that lady from the sprint commercial that said she thinks of T-Mobile as "ghetto" when she talked with Claure, let's see who's ghetto now lol

13. MartyK

Posts: 1043; Member since: Apr 11, 2012

I have the solution instead of merging.. Roaming agreement.. Both companies build 5G companies is allow to use it free a charge to each others.. No merge everyone happy!

14. jonathanfiuwx

Posts: 180; Member since: Mar 10, 2017

That's actually happening and on Reddit people are saying we can roam on each other's towers right now

16. JimmieCrakCorn

Posts: 143; Member since: Nov 20, 2017

Only $26.5 billion? Sprint isn't worth very much is it? I thought it'd be worth around $50 billion considering AT&T and Verizon are worth around $203 billion each.

17. cornerofthemoon

Posts: 620; Member since: Apr 20, 2010

Massive layoffs coming....Who da 5ukk are they kidding?

18. tokuzumi

Posts: 1873; Member since: Aug 27, 2009

While it will take a few years to shut down the CDMA network, this will mean manufacturers won't have to may "Sprint-specific" variants of smart phones. And Sprint customers will have access to all sorts of unlocked phones which the didn't have previously. Want a OnePlus device, but you are on Sprint? No problem. And there are places where Sprint has good coverage and t-mobile is very spotty. From a phone standpoint, this will stand to benefit Sprint customers. From a coverage standpoint, this will benefit T-Mobile customers.

21. LiveFaith

Posts: 458; Member since: Jul 04, 2015

While I'm sure they'll be a load of overlap, does anyone know what the coverage comparison of this merger will create for customers? I travel extensively in the States and regularly in rural areas. Neither network has even been a consideration for my business. Would welcome a 3rd option.

20. LiveFaith

Posts: 458; Member since: Jul 04, 2015

OK. I have to ask this because I've been wondering for a while now. Why on God's green earth do I see a photo or video clip of this corny looking T-Mob CEO in his tee shirt plastered all over PA and elsewhere? Is this T-Mobile paying PA and others as a form of marketing? There's no good reason that I should have this guys mug burned into my brain. It's the crappiest network nationwide, yet there he is.

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