Sprint not acquiring MetroPCS

[kevincott]

Looks like T-Mobile has a leg up on acquiring MetroPcs. Was hoping Sprint would get 'em.

T-Mobile/MetroPCS merger on the table, Deutsche Telekom finalizing plans

 

[kolosus]

Urm. But metro is CDMA, TMo is GSM. How do they plan to reconcile that?

 

[kevincott]

Curious myself, T-Mobile is GSM/HSPA where MetroPCS and Sprint is CDMA/LTE.

Would have been good for all of us in the end.

 

[RodgerBrooks]

Deutsche Telekom and MetroPCS today announced that the companies have agreed to merge T-Mobile USA with MetroPCS.

The combined company will be called T-Mobile, and will be run by current T-Mobile USA CEO John Legere. The transaction would be a reverse merger, wherein the smaller MetroPCS will acquire the larger T-Mobile USA. Deutsche Telekom would then have time to reduce its ownership of the firm through gradual equity sales rather than all at once. Initially, Deutsche Telekom will own 74% of the merged entity and MetroPCS will own 26%. Deutsche Telekom will give MetroPCS $1.5 billion in cash, will assume the bulk of T-Mobile USA's debt, and will provide $500 million in credit for the new company.

According to Deutsche Telekom, the new company would have "a path to at least 20x20 MHz of 4G LTE in many areas." Deutsche Telekom said MetroPCS's customers will be migrated to LTE-based hardware if/when they need to update their devices. The companies believe the combined T-Mobile USA/MetroPCS will be able to compete better with the nation's top three wireless network operators through improved handset selection, $6 to $7 billion in cost savings, and increase its B2B and MVNO opportunities. If approved by the government, the merged business would have about 42.5 million customers, still well below the subscriber numbers of AT&T and Verizon Wireless. The transaction is expected to close in the first half of 2013.

 

[ZingBot]

Curious myself, T-Mobile is GSM/HSPA where MetroPCS and Sprint is CDMA/LTE.

Has T-Mobile said if/when they are going to LTE?

 

[kevincott]

Good news. Sprint hasn't given up yet.

Report: Sprint ready to engage with T-Mobile in bidding war for MetroPCS