The boards ofT-Mobile andSprint have put the finishing touches on a massive merger agreement that values the combined company at $146 billion.
T-Mobile USA chief executive officer John Legere made the announcement by tweeting a seven-minute video breaking down the merger, also including a link to a website further explaining the combination.
Legere will be CEO of the newly combined entity, will keep the T-Mobile name, and have headquarters located in both Bellevue, Wash. and Overland Park, Kan.
The deal, which will combine the third- and fourth-largest US wireless carriers, is expected to come under serious scrutiny from antitrust regulators. For evidence of that, one need not look further than how fervently the Trump administration has opposed AT&T‘s proposed mega-acquisition of Time Warner .
The agreement also marks the culmination of four years of on-again, off-again discussions between T-Mobile and Sprint. With 127 million customers between them, the two newly teamed firms are expected to seriously compete withVerizon— the nation’s number one carrier — and second-placeAT&T.
“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 an official statement . “We intend to bring this same competitive disruption as we look to build the world’s best 5G network that will make the US a hotbed for innovation and will redefine the way consumers live and work across the US, including in rural America.”
The all-stock transaction values Sprint at 0.10256 per T-Mobile share, or $6.62 a share, based on T-Mobile’s last closing price. That valued Sprint at around $26 billion.