After failing to join forces with AT&T, T-Mobile’s parent company, Deutsche Telekom AG, is reportedly mulling over the possible acquisition of MetroPCS to help recoup lost customers here in the U.S. Sources close to discussions said the deal will involve a stock-swap transaction in return for full control over the combined entity. Other options, according […]
Things didn’t go Deutsche Telkom’s way after the FCC blocked AT&T’s planned acquisition of T-Mobile USA. Now, T-Mobile’s parent company needs to build the fourth largest U.S. wireless carrier into the strongest competitor possible. How? By acquiring smaller carriers. A new report from Bloomberg on Tuesday suggests that Deutsche Telekom will discuss acquiring MetroPCS, and may […]
The Department of Justice does not have any objections to the planned merger between Deutsche Telekom’s T-Mobile USA and MetroPCS. The two companies announced intentions to merge in October of last year, but the deal requires regulatory approval and approval from shareholders. “Deutsche Telekom has reached an important staging post at the approval process of […]
Last week the Department of Justice kept quiet on the T-Mobile/MetroPCS merger, signifying that it did not have an issue with the proposition, and on Tuesday the deal got another big green light. The Federal Communications Commission has given the planned acquisition its grant of approval. “With today’s approval, America’s mobile market continues to strengthen, […]
MetroPCS seems to face a bit of an uphill battle to allow this merger to work, its largest investor, Paulson & Co. has openly disapproved of the deal. The most popular battle cry for opposition is how the newly formed telco will be saddled with debt. As part of the deal Deutsche Telekom would own three-quarters of the new company while handing over $1.5 billion in cash to MetroPCS shareholders and footing another $15 billion loan to the business. Some investors are not so keen on the idea of a relatively high 7-percent interest rate on the loan.
The proposed merger is a move to compete against larger carriers. While costly, supporters believe its either this deal or see both T-Mobile and MetroPCS fall into further irrelevancy. The proposed merger would create a subscription base of 42.3 million, less than half the size of AT&T or Verizon Wireless, but does place the company in better footing than standing alone.
Opposition to the merger at this point may be moot as the Federal Communications Commission, Department of Justice and Committee on Foreign Investment in the U.S. have all approved the deal as well as key investors of both companies.