Ina Fried

Recent Posts by Ina Fried

Confirmed: T-Mobile USA, MetroPCS to Combine in Cash and Stock Deal

T-Mobile parent Deutsche Telekom said Wednesday that it has reached a deal to combine its U.S. wireless operations with MetroPCS.

Under the terms of the deal, MetroPCS shareholders will get $1.5 billion in cash and a 26 percent stake in the combined company, while Deutsche Telekom will own the remaining 74 percent.

The deal requires regulatory approval as well as a nod from MetroPCS shareholders, and is expected to close in the first half of 2013.

“We are committed to creating a sustainable and financially viable national challenger in the U.S., and we believe this combination helps us deliver on that commitment,” Deutsche Telekom CEO René Obermann said in a statement.

Although the deal would help strengthen T-Mobile’s business, the combined company will still lag far behind market leaders AT&T and Verizon Wireless in terms of spectrum holdings and number of subscribers.

Additionally, the two companies have considerably different business strategies and underlying technologies, issues that could complicate integration.

T-Mobile discussed the deal further on a conference call. Here’s a recap of that call..


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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik