Sprint, T-Mobile announce $26.5-billion merger.
T-Mobile US Inc. and Sprint Corp. agreed to combine Sunday in a $26.5-billion merger, creating a wireless giant to compete against industry leaders AT&T Inc. and Verizon Communications Inc.
Deutsche Telekom AG, the Bonn, Germany, company that controls T-Mobile, and SoftBank Group Corp., the Tokyo owner of Sprint, agreed to a combination that values each Sprint share at 0.10256 of a T-Mobile share, the companies said in a statement. That ratio values Sprint at $6.62 a share based on T-Mobile's Friday closing price of $64.52.
The new company will use the T-Mobile name, with T-Mobile's John Legere as chief executive officer and Mike Sievert as chief operating officer. The German company's chairman, Tom Hoettges, will serve in that role at the combined company, and the board will include SoftBank Chief Executive Officer Masayoshi Son. The companies said they expect synergies of about $43 billion, with more than $6.5 billion on a run-rate basis.
"This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own," Legere said in the statement..
T-Mobile US Inc. and Sprint Corp. agreed to combine Sunday in a $26.5-billion merger, creating a wireless giant to compete against industry leaders AT&T Inc. and Verizon Communications Inc.
Deutsche Telekom AG, the Bonn, Germany, company that controls T-Mobile, and SoftBank Group Corp., the Tokyo owner of Sprint, agreed to a combination that values each Sprint share at 0.10256 of a T-Mobile share, the companies said in a statement. That ratio values Sprint at $6.62 a share based on T-Mobile's Friday closing price of $64.52.
The new company will use the T-Mobile name, with T-Mobile's John Legere as chief executive officer and Mike Sievert as chief operating officer. The German company's chairman, Tom Hoettges, will serve in that role at the combined company, and the board will include SoftBank Chief Executive Officer Masayoshi Son. The companies said they expect synergies of about $43 billion, with more than $6.5 billion on a run-rate basis.
"This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own," Legere said in the statement..
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