T-Mobile and MetroPCS $1.5 Billion Dollar Merger Officially Moves Forward

[dgstorm]

Here's an example of a business deal moving forward quickly. Just yesterday there was word that Deutsche Telekom, the parent company of T-Mobile was in talks with MetroPCS to merge the two U.S. networks together. This morning we already have word that a $1.5 Billion agreement has been agreed to and is ready to proceed forward. Supposedly, the new merged companies will be called T-Mobile and will still be run by T-Mobile Chief Executive John Legere. Here's a quote with some additional detail,

T-Mobile says that the merger is “structured as a recapitalization, in which MetroPCS will declare a 1 for 2 reverse stock split, make a cash payment of $1.5 billion to its shareholders (approximately $4.09 per share prior to the reverse stock split) and acquire all of T-Mobile’s capital stock by issuing to Deutsche Telekom 74% of MetroPCS’ common stock on a pro forma basis.”

This is a deal that is much less likely to be halted by the Federal government like what happened when AT&T tried the same thing.

Source: BGR

[Mujibar]

Hmmm ... very interesting. More competition is a good thing, no?

~ GNexified ~