The Strategist

Sprint, T-Mobile close merger deal worth $31B

04/02/2020 - 05:12

US telecom operator T-Mobile US Inc. closed a deal to buy its rival Sprint Corp. after a two-year battle with regulators.

Betty Longbottom
Betty Longbottom
The deal, which totaled more than $ 31 billion, based on their T-Mobile US stock price at the close of the market on Tuesday, will put an end to the Sprint brand. Over the past ten years, Sprint has been losing customers, yielding to more successful competitors, including T-Mobile US, writes The Wall Street Journal.

On Wednesday, T-Mobile US announced that John Legere would be stepping down as CEO, to be replaced by his deputy, Mike Sievert. It was previously planned that Ledger would resign on May 1.

Many of the top managers at T-Mobile US will remain in the company's management, which will also include some of Sprint's executives.

As a result of the transaction, about 43% of the new company belongs to Deutsche Telekom AG and another 24% to the Japanese SoftBank Group, which owns Sprint. The remaining shares of T-Mobile US are in the hands of public shareholders.

T-Mobile US and Sprint have tried to unite several times over the past 10 years, but for a long time they could not overcome the resistance of regulatory authorities. In February this year, the U.S. court approved the deal, dismissing a lawsuit by a state group alleging that the merger of the two operators would violate antitrust laws and lead to more expensive communications. Following this, the companies revised the terms of the transaction.