Topline: After a federal judge on Tuesday approved the $26 billion merger between T-Mobile and Sprint, shares of both companies have already surged by 12% and 77%, respectively—with more upside still to come after the merger is finalized and the newly combined company begins to transition to 5G, according to one expert.
Why did T Mobile merge with Sprint?
The court let T-Mobile buy Sprint because Sprint completely sucks
- SPRINT: DOES IT SUCK OR SUCK THE MOST? A LEGAL CONCLUSION. ...
- DISH NETWORK: DEFINITELY GOING TO BUILD A NETWORK, WE THINK. A huge part of the argument for the merger is that the Department of Justice brokered a deal by which ...
- T-MOBILE IS THE BEST, AND JOHN LEGERE IS A DREAMBOAT. ...
Is the T-Mobile and Sprint merger good or bad?
The merger of Sprint and T-mobile may be beneficial to the consumer of DoCoMo, the Japanese mobile company owned by SoftBank, but will be bad for American customers of both Sprint and T-Mobile
Did T Mobile acquire sprint?
The Sprint brand was discontinued by T-Mobile on August 2, 2020. In December 2013, multiple reports indicated that Sprint Corporation and its parent company SoftBank were working towards a deal to acquire a majority stake in T-Mobile US for at least US$20 billion.
Did sprint buy T-Mobile?
Sprint Corp. (NYSE:S) agreed to pay about $32 billion, at $40 per share, to buy T-Mobile US Inc. (NYSE:TMUS), Reuters reports, taking the third- and fourth-largest U.S. mobile network operators, respectively, one step closer to officially merging, which could happen as early as this summer.
Is T-Mobile stock worth buying?
T-Mobile expects over 10% growth in earnings before interest, taxes, depreciation and amortization, or EBITDA, up from 7% in 2021, due to faster Sprint synergy realization. After hitting an all-time high of 150.20 on July 16 last year, T-Mobile stock swooned.
What the T-Mobile and Sprint merger means for you?
Sprint subscribers that are in an area where Sprint doesn't have LTE coverage will automatically connect to T-Mobile's LTE network (the vice versa is not true if you're on T-Mobile). Eventually, the two networks will merge and everyone on T-Mobile and those that came from Sprint will see greater coverage.
Will T-Mobile ever pay a dividend?
Using the company's revised guidance, T-Mobile's free cash flow totaled should be almost $7.4 billion in 2022. Therefore, T-Mobile could use $3.7 billion to pay each of its 1.24 billion shares outstanding an annual dividend of $2.98. Based on the current share price of ~$123, T-Mobile's dividend yield would be 0.8%.
Is the T-Mobile Sprint merger good?
As far as consumers are concerned, this Sprint/T-Mobile Merger is not a good thing. The first reason is because fewer carriers means less competition, and less competition means higher prices.
How will Sprint merger affect customers?
For now, all customers will stay with the same Sprint and T-Mobile network and service they've been using. Sprint customers can now visit a T-Mobile store for service; most T-Mobile branded stores can now serve both Sprint and T-Mobile customers.
Will Sprint phones work on T-Mobile after merger?
First of all, Sprint phones works on the T-Mobile network, and vice-versa. Both T-Mobile and Sprint networks remain up and running, and as such, all phones or devices connected to them will not lose connection. On the new combined network, both Sprint and T-Mobile users experienced improvements in coverage.
Which stock has the highest dividend?
Highest current dividend yieldsCompanyTickerCurrent dividend yieldKinder Morgan Inc. Class PKMI, +1.48%5.80%AT&T Inc.T-US5.25%Verizon Communications Inc.VZ, -2.17%5.05%International Business Machines Corp.IBM, +2.61%4.93%12 more rows•May 25, 2022
What is the dividend on T Mobile stock?
T-Mobile US does not have any plans to pay a dividend on its common stock at this time.
What is Tesla's dividend?
Tesla (NASDAQ: TSLA) does not pay a dividend. Is Tesla's dividend stable? Tesla (NASDAQ: TSLA) does not pay a dividend.
What's better T-Mobile or Sprint?
Data hogs: Pick T-Mobile. Sprint's Unlimited plans give you 23 GB of 4G LTE data per month, but that can't compare to T-Mobile's Magenta plan's generous 50 GB allotment. Speed lovers: Pick T-Mobile. T-Mobile consistently has higher and more reliable data speeds than Sprint, countrywide.
Why T-Mobile is the best carrier?
T-Mobile has the fastest average 5G download speed at 135.17 Mbps and the highest average customer time spent connected to 5G. These impressive 5G statistics are just further evidence of T-Mobile's dominance when it comes to data speeds. T-Mobile's 5G speeds and coverage can now be enjoyed at home for all devices.
Who now owns Sprint?
T-Mobile USSoftBank GroupSprint Corporation/Parent organizations
When did mergers and acquisitions become illegal?
In 1914 , the Clayton Trust Act outlawed mergers and acquisitions that "substantially lessen competition" in an industry, so if the court rules that a merger or acquisition would violate the act, then it is not allowed to proceed. The ruling on this case holds that the merger will not reduce competition.
Why do companies stick to their promises?
There are several good reasons for the company to stick to this promise. In order to gain the most (both for the company and the shareholders), the combined company cannot afford to raise prices for consumers, at least not in the short term. Creating long-term value for shareholders.
What would happen if Dish didn't build 5G?
Dish founder Charlie Ergen replied, "If we didn't" build out the 5G network, we'd be writing off $12 billion in assets and subject to $2 billion in fines. It would be financial suicide.". Some analysts hold that Dish will never be able to compete, and that the reduced competition is inevitable.
Did T-Mobile merge with Sprint?
Explore the topics mentioned in this article. In April 2018, John Legere, the CEO of T-Mobile (NASDAQ:TMUS), made the long-expected announcement that T-Mobile and Sprint (NYSE:S) had reached an agreement to merge in a $26 billion all-stock deal. Before the deal could be completed, however, 14 state attorneys general sued to block ...
Does Sprint sell Virgin Mobile?
As T-Mobile proposed, Sprint will sell its Boost Mobile and Virgin Mobile assets to Dish and allow customers of the new Dish mobile plans to piggy-back on T-Mobile's network for seven years while it built out its own wireless 5G network.
What is the merger of T Mobile and Sprint?
The combined assets of T-Mobile and Sprint are so complementary that the merger is expected to unlock at least $43 billion in synergies for all shareholders . The vast majority of synergies in this deal come from combining networks, such as reducing redundant cell sites and rapidly deploying spectrum and other technologies more efficiently. The company plans to deliver a seamless, high-quality integration, just as it did with its MetroPCS merger, which was completed a year earlier than planned. These synergies and our combined scale are expected to put New T-Mobile in an enhanced financial position, including significant free-cash flow, margin expansion and strong, flexible capital structure.
When did T-Mobile merge with Sprint?
Bellevue, Washington and Overland Park, Kansas – April 1, 2020 – T-Mobile US Inc. (NASDAQ: TMUS) announced today that it has officially completed its merger with Sprint Corporation to create the New T-Mobile, a supercharged Un-carrier that will deliver a transformative 5G network.
How fast is 5G?
Customers will have access to average 5G speeds up to eight times faster than current LTE in just a few years and 15 times faster over the next six years. Within six years, the New T-Mobile will provide 5G to 99% of the U.S. population and average 5G speeds in excess of 100 Mbps to 90% of the U.S. population.
What is T Mobile?
T-Mobile U.S. Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all.
Is T Mobile 5G reliable?
The New T-Mobile’s commitment to building the world’s best broad and deep nationwide 5G network, which will bring lightning-fast speeds to urban areas and underserved rural communities alike, is more critical than ever, as reliable connectivity has become so important to Americans. With 14 times more capacity in six years than standalone T-Mobile ...
Does T Mobile offer free 5G?
The New T-Mobile will offer free access to 5G and the best rate plans at low prices, now and in the future, so all customers can reap the benefits of a supercharged Un-Carrier network at a great value. And the New T-Mobile has committed to delivering the same or better rate plans for three years, which includes access to 5G, ...
Where is T Mobile located?
Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile. For more information, please visit https://www.t-mobile.com. Important Additional Information.
What is the S-4 form for T Mobile?
Important Additional Information. In connection with the proposed transaction, T-Mobile US, Inc. (“T-Mobile”) has filed a registration statement on Form S-4 (File No. 333-226435), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on October 29, 2018, and which contains a joint consent solicitation statement ...
Is T-Mobile merging with Sprint?
T-Mobile continues to have option to draw on committed bridge financing from sixteen leading U.S. and global banks. Bellevue, Wash (BUSINESS WIRE) – March 19, 2020 – T-Mobile US, Inc. (NASDAQ: TMUS) today announced that it is currently financially prepared to close its planned merger with Sprint, based on its previously secured commitments ...
Who worked on the T-Mobile merger?
Melody Wang worked on the T-Mobile/Sprint merger while at the New York Attorney General’s office. She also assisted with The Capitol Forum’s coverage of T-Mobile/Sprint, both when the deal was announced in 2018 and during the 2019 trial. Tags.
Why did the Delrahim-led DOJ challenge the T-Mobile/Sprint deal?
Because the Delrahim-led DOJ was derelict in policing the T-Mobile/Sprint deal, a group of states challenged the merger in federal court. In presenting their case, they pointed out flaws in the DISH settlement—chiefly that the divestiture relied on T-Mobile to help DISH grow to scale in wireless, but T-Mobile would have the ability and incentive to cripple DISH.
What entity to analyze in a merger?
The entity to analyze in a merger is “the firm,” not any one individual. Not only does the individual manager have a financial interest in the merger being consummated, but the manager is not the dispositive player, as they may change roles or move on from the company.
Does Sprint sell to Dish?
Here was his plan: Sprint would sell its prepaid-wireless assets to DISH. These assets included Sprint’s 9.3 million prepaid subscribers, its Boost brand, its 800 MHz spectrum licenses, and the Sprint stores and cell towers that the new T-Mobile did not want.
Is Sprint integrated with T-Mobile?
We're still waiting to see how Sprint customers will be integrated into T-Mobile. A message on the Sprint website tells current subscribers that they can continue using their smartphone as before without having to worry about a change in rates.
Does T Mobile sell off Sprint?
One of the concessions T-Mobile made to win regulatory approval was that it would sell off Sprint's prepaid business to another company. That essentially means Boost Mobile will soon have a new owner, as Sprint folded its Virgin Mobile subsidiary into Boost earlier this year.
Does T Mobile have a data plan?
T-Mobile has already rolled out a new data plan as part of its merger with Sprint, and it didn't even wait for the ink on the deal to dry. Back in March, the carrier launched T-Mobile Connect — a $15 prepaid plan that gives you 2GB of data alongside unlimited talk and text. Upping your data allotment to 5GB raises the monthly rate to $25, and T-Mobile to add 500MB to your plan every year for the next five years if you stick with T-Mobile Connect.
Background
In late April 2018, John Legere and Marcelo Claure, the respective CEO’s of TMobile and Sprint, announced a $26bn merger of the two telecommunications behemoths [1]. The motivation for this merger was “to form a new company… that will deliver lower prices, better service and the first and best 5G nationwide network” [2].
The US Telecommunications Market
The telecoms industry plays a pivotal role in the American economy, with hundreds of millions of consumers utilising services and products supplied by the market on a daily basis, to conduct trade, make business decisions, update social media, play games, store data, and much, much more.
Implications of the Merger
During the merger’s promotional video, Legere spoke about the benefits of the formation of the new company. His main points centred around “robust competition”, “lower prices”, and “new jobs” across the US. The new company will be the self proclaimed “only company with the capacity to quickly create a broad and deep nationwide 5G network” [16].
Conclusion
Both firms undoubtedly face challenging months ahead in terms of pushing the proposition of the merger through courts and past regulators.
