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Deutsche Telekom And MetroPCS Boards Give Go-Ahead To T-Mobile Merger

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http://techcrunch.com – The boards of T-Mobile parent company Deutsche Telekom and MetroPCS has approved a deal to merge MetroPCS and T-Mobile USA, sources told the Wall Street Journal this morning. T-Mobile previously sought to be acquired by AT&T, but that deal was shot down by U.S. regulators. The news that this deal was being discussed yesterday increased the value of MetroPCS shares by as much as 26 percent, putting its value at the highest in 14 months. The deal could help T-Mobile recover from losses to its subscriber base suffered by not being able to offer the iPhone on its network. The structure of the (IT news)

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Submitted by linuxgeek on 10/03/2012

Stories similar to Deutsche Telekom And MetroPCS Boards Give Go-Ahead To T-Mobile Merger

It was confirmed yesterday that MetroPCS and T-Mobile were in talks of a merger, now the deal has been approved. MetroPCS and their 9.3 million subscribers will be under the T-Mobile umbrella, headed by T-Mobile’s CEO John Legere. T-Mobile and MetroPCS have fewer subscribers than Verizon, AT&T, and Sprint, but this deal will bring them to over 35 million customers.

This was definitely news that I was surprised waking up to. It appears that T-Mobile USA and MetroPCS are in heavy talks in a merger where T-Mobile will absorb MetroPCS in hopes to compete against Sprint’s #3 spot among US providers. What’s even more surprising is that both T-Mobile and MetroPCS are confirming such talks!

T-Mobile’s parent company, Deutsche Telekom, was poised to merge with MetroPCS for a purchase price of $1.5 billion, until the shareholders stepped in. MetroPCS, who has been successful with their low-cost LTE service, is currently sitting at around $11.33 per share.

T-MOBILE USA AND METROPCS TO COMBINE, CREATING VALUE LEADER IN U.S. WIRELESS MARKETPLACE

T-Mobile Press Release

As noted here: T-Mobile, MetroPCS Merger Approved: MetroPCS Will Technically Acquire T-Mobile, this is not exactly what yesterday's rumours suggested might come to pass.

Jim

Unlimited Wireless Service - MetroPCS

About Us October 3, 2012

To our Valued MetroPCS Customers:

Today marks an important milestone in MetroPCS history and an exciting, positive step for our company. This morning we announced that MetroPCS has entered into a definitive agreement to combine our business with T-Mobile USA.

Yesterday, things looked all but certain for a merger to occur between T-Mobile and MetroPCS according to an announcement from Deutshe Telekom AG. One day later though the situation may have changed. Reports indicate Sprint may be in the process of preparing a rival proposal to acquire MetroPCS. Analysts believe Sprint and MetroPCS would be a good fit because their networks are compatible.

When it comes to popular mobile apps for messaging and sharing content like Facebook and Twitter, carriers have been on the edges of the picture as data network providers rather than the developers of those services themselves. But a deal signed today between Jibe Mobile and MetroPCS underscores one example of how they hope to become more central players.

AT T is ending its $39 billion bid for T-Mobile, a proposed merger that had drawn considerable pushback from federal regulators and rival carrier Sprint. AT T also announced it will pay T-Mobile parent Deutsche Telekom some $4 billion in breakup fees....

Evernote, the popular note taking and personal organizer app, today took another step in its strategy to ramp up its international presence, with news that it has inked a strategic partnership with Deutsche Telekom, the German carrier that also owns T-Mobile.