Sprint along with also T-Mobile have sealed a blockbuster merger agreement, producing a telecom behemoth in which values the combined company at $146 billion, the two carriers announced on Sunday.
The proposed all-stock deal values Sprint at about $59 billion along with also the combined company at $146 billion, including debt. Without debt, the combined company can be valued at $26.5 billion.
The brand new company — which can be touting an ability to create a large scale 5G network along with also thousands of U.S. jobs — will preserve T-Mobile’s name, along with also will have dual headquarters in Bellevue, Wash. along with also Overland Park, Kan. John Legere, T-Mobile’s current CEO, will retain the top job inside the newly formed company.
“in which combination will create a fierce competitor with the network scale to deliver more for consumers along with also businesses inside the form of lower prices, more innovation, along with also a second-to-none network experience – along with also do the idea all so much faster than either company could on its own,” said Legere, in a statement.
“As industry lines blur along with also we enter the 5G era, consumers along with also businesses need a company with the disruptive culture along with also capabilities to force positive change on their behalf,” the CEO added.
The news confirms CNBC’s earlier reporting hat the two companies would likely strike an agreement. The companies came close to a merger agreement in November, before SoftBank CEO Masayoshi Son pulled out after weeks of talks.
The agreement still faces stiff regulatory scrutiny through the Trump administration, which has thrown up resistance to at least one some other mega-deal in ATT’s proposed acquisition of Time Warner.
If approved, the combined T-Mobile would likely have an estimated 0 million subscribers, however would likely be better positioned to compete against the two largest U.S. carriers, Verizon along with also ATT, both of which have more than 100 million subscribers each.
–The Associated Press contributed to in which article.