T-Mobile and Sprint Aiming to Close Merger as Early as April 1

T-Mobile and Sprint are aiming to finish their merger by April 1 now that all legal issues have been resolved and regulatory approval has been granted, the two companies announced today.


In a press release, Sprint and T-Mobile announced an amended business combination agreement that has been approved by the Boards of Directors of T-Mobile and Sprint. Under the terms of the amendment, T-Mobile parent company Deutsche Telekom will get a slightly higher ownership stake in the new company.

A separate arrangement entered into by SoftBank Group Corp. in connection with the amendment will result in an effective exchange ratio of approximately 11.00 Sprint shares for each T-Mobile share immediately following the closing of the merger, an increase from the originally agreed 9.75 shares. This is a result of SoftBank agreeing to surrender approximately 48.8 million T-Mobile shares acquired in the merger to New T-Mobile immediately following the closing of the transaction, making SoftBank's effective ratio 11.31 Sprint shares per T-Mobile share. Sprint shareholders other than SoftBank will continue to receive the original fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share, or the equivalent of approximately 9.75 Sprint shares for each T-Mobile share.

Immediately following the closing, and after the surrender of shares by SoftBank, Deutsche Telekom and SoftBank are expected to hold approximately 43% and 24%, respectively, of the fully diluted New T-Mobile shares, with the remaining approximately 33% held by public shareholders.

Mike Sievert, T-Mobile COO and President (who will be CEO of the new company as of May), said that with the new agreement in place, the focus is on closing the transaction and creating the new T-Mobile company "as early as April 1, 2020."

"We are on the verge of being able to do what we've set out to do from day one - reshape a broken wireless industry and create the new standard for consumers when it comes to value, speed, quality and service. The New T-Mobile is literally going to change wireless for good and now we're almost ready to get to the fun part: bringing our teams together, building this supercharged Un-carrier and becoming the envy of the wireless industry and beyond!"

The merger between Sprint and T-Mobile was able to proceed after a judge in early February ruled that the deal could go on despite an antitrust lawsuit filed by attorneys general from 13 states and the District of Columbia.

The states argued that combining T-Mobile and Sprint was not in the public's interest as it would reduce competition and lead to higher smartphone bills, but T-Mobile's pro-consumer efforts that spurred changes in the smartphone industry weighed in the merger's favor.

The combined company will be known as "New T-Mobile" and it will be the third largest carrier in the United States after Verizon and AT&T.

T-Mobile and Sprint have committed to building a nationwide 5G network covering 97 percent of the U.S. population in three years and 99 percent within six years. T-Mobile has promised not to raise prices for three years following the merger's completion, and plans to offer the same or better rate plans even when 5G connectivity is available.

To gain regulatory approval from the FCC, T-Mobile and Sprint were required to sell some of their assets to Dish, as the FCC wants to see Dish become the fourth nationwide facilities-based wireless carrier in the United States.

Top Rated Comments

(View all)
Avatar
8 months ago
Definitely glad it's over. Also, ready to continue to see T-Mobile rise to the number 1 spot.
Score: 13 Votes (Like | Disagree)
Avatar
8 months ago
Appropriate - April Fools Day
Score: 11 Votes (Like | Disagree)
Avatar
8 months ago


What’s crazy is almost/all(?)of these companies started out as one decades ago

Not really. Sprint was a completely independent company formed by the Southern Pacific Railroad (SPRint) to sell services on their internal communication network, and to lay fiber along railroad tracks, as a result of AT&T's breakup and the opened competitive market.

T-Mobile US came from Voicestream and several other independent carriers; the majority owner is actually Deutsche Telekom, the former German government phone monopoly.

AT&T Wireless was the consolidation of a number of non-wireline carriers, largely in the Cellular One brand and was partially owned by the Japanese NTT DoCoMo. AT&T Wireless was then taken over by Cingular, which was a Baby Bell and consisted of former Bell System properties.

Verizon Wireless was actually 45% owned by the British Vodafone. A large part of Verizon Wireless was GTE's cellular systems. GTE was an independent phone company which existed in parallel but was unaffiliated with the Bell System
Score: 9 Votes (Like | Disagree)
Avatar
8 months ago
Now for the merger for AT&T and Verizon.
Score: 7 Votes (Like | Disagree)
Avatar
8 months ago
T-Mobile marketing machine has already rolled out 5G to majority of USA by using low band frequency. Which provides long distance signal but only small increase in data speed. Sprint merger gives them mid band 5G that Sprint owned, less distance but much bigger speed.

Verizon...mm wave 5G? Yes the ultimate fastest, but distance not much more than WiFi router.?
Score: 7 Votes (Like | Disagree)
Avatar
8 months ago


Appropriate - April Fools Day

Yep... Those AG's are fools to not try to score a deal for their states.... instead suing and losing. These people don't see the bigger picture..... sure we are losing a national carrier.... but the 5G buildout will create an alternative broadband provider to those who have been stuck with one cable company/teleco monopolizing the markets they operate in. The next couple of years are going to be exciting with 5G and Starlink launching!
Score: 6 Votes (Like | Disagree)

Top Stories

When Will the iPhone 12 Launch? Here's What We Know

Wednesday September 16, 2020 6:12 am PDT by
Yesterday's "Time Flies" Apple event saw the release of the Apple Watch Series 6, Apple Watch SE, iPad 8, and iPad Air 4, but no new iPhone models. Rumors before the event strongly alleged that it would not see the unveiling of new iPhones, with many reports pointing to an October launch. The lack of new iPhone models yesterday seems to confirm that the iPhone 12 lineup will not appear...

iOS 14 Picture in Picture No Longer Working With YouTube's Mobile Website in Safari [Without Premium]

Friday September 18, 2020 12:21 pm PDT by
Apple in iOS 14 added Picture in Picture to the iPhone, a feature designed to let you watch a video in a small screen on your device while you continue to do other things on the phone. When Picture in Picture was working with YouTube The YouTube app doesn't support Picture in Picture, but up until yesterday there was a functional workaround that allowed videos from YouTube.com to be watched...

Hands-On With the New Apple Watch Series 6 and Apple Watch SE

Friday September 18, 2020 1:19 pm PDT by
Today's the official launch date for the Apple Watch Series 6 and the Apple Watch SE, both of which Apple announced on Tuesday. We picked up a couple of the new models and thought we'd give them a quick look for MacRumors readers thinking of ordering a new watch. Apple Watch Series 6 & Apple Watch SE Hands-On! When it comes to design, both the $399 Series 6 and the $279 SE look just like...

Here's How You Can Download iOS 14 and iPadOS 14 Around the World [It's Out]

Wednesday September 16, 2020 2:36 am PDT by
Apple's official public release of iOS 14 and iPadOS 14 dropped on Wednesday, September 16, just a day after the company released the Golden Master to third-party developers. Also set to be made available to the general public for the first time are watchOS 7 and tvOS 14. Getting Started With iOS 14 Video Click image to watch iOS 14 Getting Started While that's left a lot of developers...

Apple Releases iOS 14 and iPadOS 14 With Home Screen Redesign, App Library, Compact UI, Translate App, Scribble Support, App Clips, and More

Wednesday September 16, 2020 12:48 pm PDT by
Apple has released iOS 14 and iPadOS 14, the newest operating system updates designed for the iPhone and iPad. As with all of Apple's software updates, iOS 14 and iPadOS 14 can be downloaded for free. iOS 14 is available on the iPhone 6s and later, while iPadOS 14 is available on the iPad Air 2 and later. The updates are available on all eligible devices over-the-air in the Settings app. To ...

iOS 14.2 Beta Adds New Shazam Music Recognition Feature for Control Center

Thursday September 17, 2020 3:36 pm PDT by
Apple today released the first beta of iOS 14.2 to developers for testing purposes, and the new update introduces a Music Recognition control for the Control Center. The new feature lets you discover music playing around you and it recognizes the music playing with in apps, even when you're wearing AirPods. Songs pop up as notifications, and you can tap to listen in Apple Music....

Apple Updates AirPods 2 and AirPods Pro Firmware to Version 3A283

Monday September 14, 2020 11:24 am PDT by
Apple today released new 3A283 firmware updates for the second-generation AirPods and the AirPods Pro. The second-generation AirPods are being updated from the 2D15 firmware they were previously running, while the AirPods Pros are being updated from the 2D27 firmware they had installed previously. Apple does not provide details on what's included in refreshed firmware so we don't know what's ...

Rumor Report Card: Assessing the Accuracy of Leaks After Apple's Event

Friday September 18, 2020 12:57 pm PDT by
Apple hosted its virtual "Time Flies" event this week, where it introduced four new products, including the Apple Watch Series 6, lower-cost Apple Watch SE, a 10.9-inch iPad Air with an all-screen design, and an updated 10.2-inch iPad with a faster A12 Bionic chip. As expected, there were no new iPhones, which are believed to be coming in October instead. Apple also announced that it will be ...

Epic Games Announces 'Fortnite: Save the World' Will No Longer Be Playable on macOS

Friday September 18, 2020 4:50 am PDT by
Epic Games has announced that "Fortnite: Save the World" will no longer be playable on macOS, after Apple terminated Epic Games' developer account. Fortnite has been in violation of the ‌App Store‌ rules since August 13, when it introduced a direct payment option that skirted Apple's in-app purchase system by allowing payments directly to ‌Epic Games‌. Shortly after Epic blatantly...

Deals: Cellular Carriers Introduce First Offers on Apple Watch Series 6 and SE

Friday September 18, 2020 7:43 am PDT by
With the launch of the Apple Watch Series 6 and Apple Watch SE today, cellular carriers have now introduced special offers for these new wearable devices. Note: MacRumors is an affiliate partner with these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. Starting with AT&T, if you buy one Apple Watch Series 3, Series...