Sprint and T-Mobile have jointly announced a mega-merger agreement which is valued at $146 billion, including liabilities. The announcement was made on Sunday and reflects both company’s desire to catch up with rival operators AT&T and Verizon. AT&T and T-Mobile both provide service using the GSM standard while Verizon and Sprint primarily use CDMA. All four also operate networks using LTE standard for their 4G services.
However, both Sprint and T-Mobile have reportedly lagged behind Verizon and AT&T who are the two largest wireless companies. The proposed deal is an all-stock deal which values Sprint at about $59 billion and the combined company at $146 billion, including debt. Without debt, the combined company is valued at $26.5 billion, showing how heavily indebted both companies are.
I’m excited to announce that @TMobile & @Sprint
have reached an agreement to come together to form a new company – a larger, stronger competitor that will be a force for positive change for all US consumers and businesses! Watch this & click through for details.
— John Legere (@JohnLegere) April 29, 2018
The new company will be called T-Mobile and will retain the two headquarters at Bellevue, Washington and Overland Park, Kansas. T-Mobile’s current CEO John Legere will retain the top job in the newly formed carrier while SoftBank CEO Masayoshi Son had to give up control of his company to make the merger happen. The deal isn’t a done deal, though, as it still has to face scrutiny from regulatory authorities in the U.S. If approved, the combined T-Mobile would have an estimated 120 million subscribers and would be in a good stead to take on Verizon and AT&T. Both merger also promises 5G technology in the near future.