T-Mobile officially announces MetroPCS merger, provides more details


T-Mobile has posted a news release officially confirming the completion of a deal that will merge the carrier’s operations with those of MetroPCS. The two providers will combine to host some 42.5 million subscribers on an “expanded scale” with the benefit of additional spectrum and financial resources, all while retaining the T-Mobile banner.

As reported earlier, T-Mobile will hold a 74 percent stake in the reorganized company, and will provide a $1.5 billion payment for MetroPCS shareholders. Estimates from the company project for $24.8 billion in revenue and $6.3 billion in earnings before interest, taxes, depreciation, and amortization.

[via T-Mobile]

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$1.5 billion agreement reached in T-Mobile/MetroPCS merger

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  1. A few interesting points:
    – It’s a reverse merger, MetroPCS is actually acquiring T-Mobile, but they’re keeping the T-Mobile name
    – Merger could lead to T-Mobile overtaking Sprint as third largest carrier within two years:

    1. They structured it that way so shares could be publicly traded and so DT could get out of the U.S. market in the future, if they so desired. In reality, DT is buying MetroPCS, and will control 3/4 of the company.

      So, Tmo users, don’t panic…you aren’t going to become MetroPCS customers


    2. How is metro acquiring T-Mobile if T-Mobile keeps 74% share

      1. That’s what a reverse merger is. The smaller MetroPCS will buy the larger T-Mobile, but Deutsche Telekom will own 74 percent, while MetroPCS will control the other 26 percent. The companies said the deal would be “structured as a recapitalization” in which MetroPCS will declare a 1 for 2 reverse stock split and make a cash payment of $1.5 billion to its shareholders.

        1. I have a headache now.

        2. So can you please translate the last sentence into something that is easier to understand, because you basically quoted the CNBC article.

          1. It means that on paper, MetroPCS is the acquiring entity, but in reality DT now owns MetroPCS.

          2. So how is this different from tmobile buying metro? Is it that metro is technically the owner but just doesn’t hold a majority stake for the time being? And if metro were to buy up shares from DT they could then separate, taking tmobile and metropcs assets and letting DT out of the US cellular market?

          3. It’s confusing, right? Essentially you’ve got the point. DT will pay mpcs shareholders a certain amount. In the end, it is MPCS making the acquisition on paper (this way the shares can be easily publicly traded). However, the result will be that DT will hold 76% of the company. They will be the majority owners.

          4. While not exactly what’s happening, look at it as DT loaning MetroPCS the money to buy TMobile from themselves. DT will then own 76% of MetroPCS, which is renaming itself TMobile.

          5. Umm, kinda. Except in reality, tmo is absorbing mpcs. Just not s far as shares go. In any event, what some tmo customers are probably scared of is not happening…tmo customers are not suddenly going to be mpcs customers.

          6. IOW it means this is a major WIN

  2. Like I said, this would only have happened if DT threw money into it. Don’t get me wrong, its an incredibly smart move, but TMo just doesn’t have money to throw around right now because its working on a budget set by DT. It seems like DT doesn’t really want to get rid of TMo anymore though, which is actually smart because I see them doing very well within the next few years.

    I am actually excited to see the ending coverage results after the merger is finished as it may be enough to make me switch from Sprint.

    1. T-Mobile will have 20x20mhz LTE-Advanced in tons of markets. Something that isn’t possible with the current spectrum holdings of Sprint and At&t.

  3. So since metro is taking T-Mobile, does this mean that t-Mo will ditch GSM for CDMA?
    Metro runs on CDMA right?
    What will this mean to the current t-Mo and metro subscribers?

    1. That would make no sence T-Mobile gsm network is any times bigger than metros this is just a spectrum purchase the help deeply lte

    2. T-Mobile is actually the one “taking” MetroPCS in that Detusche Telekom will own 74% of the new company with Metro having a 26% stake. For a while, they will operate both the CDMA and GSM networks until most people are on the common LTE platform. At this point, CDMA will likely be shut down in favor of the bigger GSM network and that spectrum will be used to enhance LTE.

  4. This would have been a better fit if Sprint bought them!

    1. I know, I’m mad Sprint didn’t get them… Oddly enough Metro coverage at my home is way better than my Sprint coverage

      1. Same here! Sad sad day.

      2. Thats not odd at all.

      3. Sprint is still trying to pay Apple for the iPhones they bought. Looks like the Apple might turn out to be poisonous afterall

  5. I think Sprint is more worry about pay Apple for the iPhone 5 than improve its network.

    1. I think so too! Their 3g is embarrassing and their 4G is a ghost that everybody has heard of but never seen… Seems like the right time to switch to T-Mobile!

      1. I agree and I have been looking into getting t-mobiles new 4g unlimited plan for $30 but thats with no contract and you pay for the phone seperately or bring your own phone. So I will be seeing if I cant get a used HTC One S for about $150-$200 after we move that is. New place has decent coverage according to T-Mobile’s coverage map.

        1. I switched my galaxy nexus from at&t to the new $30 T-Mo plan. I am really happy with it, I am getting double the 3G speed I used to get with at&t’s clogged network – plus unlimited data

          1. Anything fromt he past year or so would feel like am upgrade over my Samsung Galaxy Prevail that I have with Boost Mobile. Since I dont talk all that often on the phone I mainly text and instant message I need the unlimited text and web since I stream music and use the phone as a hotspot for when we go on vacation since we go camping and things like the laptop and my tablet are tethered to the cell service so we can listen to our local radio station online.

        2. No its for both contract and non contract plans. Value and Classic both get unlimited data on difference between the two? Classic cost $30, Value cost $20 both are unlimited 4g i’m running it right now as we speak. I have a contract with the full 4g unlimited nationwide or what it really is, is the 9.7TB plan which is unlimited in the sense that you will almost never reach that in a month, and if you can use 9TBs in a month you are not of this world.

          1. I was looking online and the value plan with 500 talk minutes minus text plus unlimted 4g was $54.99 adding text bumped it up to $59.99 while a no contract plan with unlimited 4g data and texting and 100 talk minutes is $30 a month. Will be looking into getting a used HTC One S for about $150-$200 if I can find a used one for that amount that will be good.

        3. I tried getting the Value Plan with no contract by bringing in my Galaxy Nexus, and all the T-Mobile reps I’ve spoken to insist on me signing a contract. I am sticking with my 5GB/month $30 plan because I refuse to sign another cell contract. The Celluarsales rep who sold me my Verizon phone at the beginning of the year wants me to return the phone for “breaking contract before making 6 months on it.” I refuse to go through another contract again.

          1. Here is a link to the no contact SIM Card Activation kit that will let you choose the $30 unlimited 4g data unlimited text and 100 minutes of talk time.

          2. I have this plan. I was talking about the post-paid Value plan. I want it, but T-Mobile insists I sign a contract, and with my recent harassment from a Verizon rep, I will never do again.

    2. And what do they end up with? An iphone 5 that can’t talk and surf at the same time, unlike AT&T’s version.

  6. T-Mobile is friendly, and AT&T has good service but is evil… What I’m saying is I’m glad they didn’t merge with someone evil. This is probably a good thing for T-Mobile, because they’re a friendly company that I don’t hate :-)

  7. My guess is sprint will soon buy US Cellular

    1. That would be awesome. US Cellular already has LTE service in places that Sprint does not (namely, in my home town). I have no idea if their devices are compatible with each other’s spectrum bands. Sprint is rumored to be courting Leap though, so we will see.

  8. Wow that was fast… Go Tmo!

  9. Anyone remember how badly Sprint opposed the At&t merger of T-Mobile? Oh man, are they about to regret that now! Sprint could have had the whole value market to themselves but they are about to get killed by T-Mobile.

  10. I am a former Sprint customer… I’ll always love them because they were so much better than AT&T and Verizon, and have unlimited data, but I lost my job under contract with them and ended up owing money so I recently signed up with T-Mobile after they got the same data plan as Sprint and I love them! I hope this merger helps the company in any way that will help them have such a great plan, plus every customer service rep I’ve talked to so far has been amazingly friendly and helpful.

  11. metroPCS IS NOT being bought or sold. metro is acquiring tmobile USA from its owner deusche telekom.

    1. No, T-mobile is merging MetroPCS. That is why DT is going to hold 74%, Only a fool would think a bigger company (t-mo) would get bought out buy a significantly smaller company (MetroPCS). Don’t be a fool.

      1. so metropcs will end up like virgin mobile with sprint. works for me. i’ll be able to get the galaxy S4 when it comes out next year.


    3. T-Mobile USA is not a public entity. Doing a reverse merger where Metro, which is already publicly traded, acquires T-Mobile USA is the fastest way to get the combined company public. It’s just an out of the box corporate tactic… at the end of the day: T-Mobile bought Metro PCS. The same T-Mobile people are in control here.

      Very different from when Cingular bought At&t and changed the name to at&t because they liked the name better.

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