Shareholders approve MetroPCS and T-Mobile merger

Exactly two weeks ago, Deutsche Telekom presented MetroPCS shareholders with a new “sweetened” deal that they hoped would convince the folks to vote to approve the merger. The original deal would have loaded MetroPCS with enough debt to scare off any shareholders still sitting on the fence. That extra debt would have weakened the value of shareholder equity, something that any self respecting financier would throw in the trash. Deutsche Telekom’s new deal lessened that burden which, in effect, gave the shareholders’ existing equity even more value.

With that, the vote ended up being rescheduled for today, and it looks like all of the ballots have been punched. The result? Say hello to a new mega marriage in the United States cellular market — T-Mobile and MetroPCS are now one in the same. Under the deal, Deutsche Telekom now owns 74% of the new company. T-Mobile stands to gain some 9 million customers, as well as a whole heap of significant spectrum that it will certainly need for the future of its 4G and voice networks.

As with most of these transactions it would appear that MetroPCS will continue operating as a separate entity in the public eye for the time being. Still, we’re sure the two are brewing up an elaborate plan that will roll more subscribers (and, in turn, cash) into T-Mobile’s coffers over the coming months and years. With no real worry of federal and regulatory hurdles holding these two back from holy matrimony it sounds like the books on this one could be closed as early as summer.

[via Bloomberg]

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  • Rdfry

    Good, Deutsche Telecommunications should have made the necessary commitment years ago to make Tmobile the top cellular provider in the Us. Now maybe they can start climbing the ladder.

    • supremekizzle

      I don’t know. If they would have ascended to the top years ago, I don’t think they’d be the value carrier they are now. It took being at the bottom to offer the deals they do now.

  • Butters619

    Hopefully T-Mobile continues to offer an unlimited data plan once they get bigger.

  • CommanderBebops

    Now the question is will I get better service at the house where T-Mobile is week (mainly Edge) when MetroPCS has good coverage for this spot. T-Mobile was aware of the problem and even tried to install a tower on this block and neighbors protested.

    • TayshaunBoba

      It’s possible. TMO is planning on decommissioning 90% of Metro sites, though, but yours could very well be part of the 10% they keep for where their coverage is lacking.

      • Brian S.

        Me just so happy. Deeeeeeeeeeeee

  • Jim__R

    Will this result in T-Mobile offering 3G data at 850 and/or 1900 bands?

    • Napster87

      t-mobile isn’t changing a thing. people on Metro will be forced into buying a t-mobile phone somewhere down the line. T-mobile will simply be using their towers for LTE purposes. which is fine.

  • Rdfry

    Hopefully they will fire up Lte here in dfw and I can upgrade to the Note III when it becomes available.

  • Jayshmay

    @ Rdfry : I agree, it takes investing to become bigger. I think T-Mobile needs to decide on a certain amount per year in network EXPANSION. Not just upgrading.