Sprint and T-Mobile finalize new terms for merger

On Thursday, Sprint and T-Mobile have reached an agreement on new terms for their mega-merger. That should pave the way for companies to complete $26.5 billion deal, following a ruling last week by a federal court, which rejected claims that the merger would be bad for consumers. Both companies say the deal could close as early as April 1.

 

Under the merger, the T-Mobile’s parent company, Deutsche Telekom will get a larger stake in the new company. German telecom giant will own 43 percent of new company. Meanwhile, the majority owner of Sprint, Softbank will own 24 percent of the new company, with the remaining 33 percent being held by public shareholders.

 

Both companies say that the changes won’t trigger another vote from the shareholders.

 

The CEO of T-Mobile, John Legere said in a statement,

“Today’s announcement is another major step forward toward the finally closing this transaction”.

Legere also occasionally talked about the company’s plans to build out its 5G wireless network. He said, “We are now on the threshold of achieving our goal”.

 

T-Mobile also announced the plans to merge with Sprint in 2018. That deal was approved by the Department of Justice and Federal Communications Commission. Under the DOJ’s approval, both companies agreed to sell the assets to satellite TV provider, Dish Network that is expected to build its own wireless network to become the nation’s 4rth-largest nationwide provide.

 

From more than 12 of the states, the attorneys general had filed the suit against that merger. In December this case went to court and the states argued that reducing number of wireless carriers from 4 to 3 would also become unviable for customers, with higher prices. Hence, the Sprint and T-Mobile argued the merger was necessary for them, to compete with AT&T and Verizon.