T-Mobile and Sprint announces merger

T-Mobile and Sprint announces merger

After several years of negotiations, T-Mobile and Sprint today officially announced that they’re going to merge. Considered the third and fourth largest mobile carriers in the United States, the two companies have decided to join forces and compete in the mobile market; although the deal is subject to approval from regulators and shareholders.

It has also been confirmed today that the combined entity is going to be called T-Mobile and existing CEO John Legere will get to keep his position. T-Mobile COO Mike Sievert will join the new T-Mobile as president and chief operating officer while Sprint’s CEO Marcelo Claure and SoftBank CEO Masayoshi Son, will both get a non-managerial role on the combined entity’s board. T-Mobile’s majority owner Deutsche Telekom will hold a 42 percent stake in the company, while Sprint majority owner SoftBank will hold 27 percent, with public stakeholders holding the rest.

Once the deal is closed, the new company will be headquartered in Bellevue, Washington with a second HQ in Overland Park, Kansas. According to the press release sent out today, the combined company will help give them a boost as they begin to deploy their next-generation 5G network across the country.

While the two companies have agreed to merge, they still have an uphill battle before that actually happens; the deal will have to be cleared by regulators, who might not be happy about the smaller number of carriers the merger will cause.

What do you think about this merger? You can share your opinions in the comment box below.

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CovenantOyetade Recent comment authors
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Well, I see this happening. More so, the two biggest shareholders have agreed to the merger, since both will be having a combined total of 69% of the shares, which is huge. I don’t think the regulators would be able to stop it then. The merger would make them a strong force in the telecom world.