T-Mobile and Sprint today announced plans to merge in an all stock deal that will create a "New T-Mobile" worth $146 billion. The new company's combined radio spectrum assets will allow it to accelerate deployment of 5G technology.
The new T-Mobile plans to spend up to $40 billion on its new combined network in the first three years, 46% more than T-Mobile and Sprint spent combined in the past three years. The new company will assume both the T-Mobile brand and most of the T-Mobile leadership.
John Legere current President and CEO of T-Mobile US will serve as CEO of the new company and Mike Sievert current COO of T-Mobile will serve as President and COO.
Tim Höttges, current T-Mobile Chairman of the Board will serve as Chairman of the Board for the new company.
Current Sprint CEO Marcelo Claure will serve on the board. Following closing the company will be headquartered in Bellevue, Wash. with a second headquarters in Overland Park, Kan. The combined company will have lower costs and greater economies of scale expected to result in run rate cost synergies of $6+ billion.
The transaction is expected to close no later than the first half of 2019, subject to customary closing conditions, including regulatory approvals.
Source: T-Mobile, Sprint