T-Mobile USA and MetroPCS are no more. In their place we now find T-Mobile US, the merged entity set to begin trading as TMUS. The Associated Press reported that the acquisition was set to be completed after the closing bell on Tuesday, and the deal is now done; the newly formed entity enters the fray with a market capitalization of about $17 billion. T-Mobile also added 9 million subscribers to its coffers with the deal, so its customer count has now climbed to 43 million — which still makes it the No.4 carrier in the United States. MetroPCS investors are netting $4.08 per share from the deal, and they will also receive half a share of T-Mobile US for each share of MetroPCS common stock they had owned, resulting in a combined 26% stake in the new company.
MetroPCS shareholders have voted in favor of the proposed merger deal with T-Mobile USA, Reuters reported. The approval comes only after Deutsche Telekom was forced to sweetened its offer for the wireless carrier after shareholders were advised to vote against the original proposal. Federal regulators at the FCC and Justice Department voiced their support for the merger in March, and the MetroPCS board unanimously approved the deal earlier this month. The merger will help T-Mobile expand its 4G LTE network to cover more than 200 million customers in the United States by the end of 2013. The deal is expected to close later this year.
The merger between T-Mobile and MetroPCS is very close to getting official now that Deutsche Telekom’s revised offer has led some major shareholders to drop their objections to the deal. MetroPCS announced on Monday that its board of directors had unanimously approved the new merger terms and said that the revised deal “significantly improves the value of the proposed combination for MetroPCS stockholders” while adding that the proposed merger “is in the best interest of all MetroPCS stockholders.” The MetroPCS merger is the linchpin of T-Mobile’s strategy to expand its operations in the United States since the prepaid wireless carrier already offers LTE services in several major metropolitan markets. MetroPCS shareholders are scheduled to vote to approve or reject the merger on April 24th.
Deutsche Telekom’s latest effort to sweeten its offer to MetroPCS (PCS) shareholders has apparently done the trick as Bloomberg reports that MetroPCS’s biggest shareholder has now tentatively come out in favor of its merger with T-Mobile. Paulson & Co., the hedge fund founded by famous investor John Paulson, said on Thursday that it “intends to vote for the merger as restructured” now that Deutsche Telekom has upped its offer, although the firm said it still needs “to review the revised proxy statement before making a final decision.” With Paulson likely to drop opposition to the acquisition, though, it seems that the final hurdle to MetroPCS and T-Mobile merging is about to be cleared.
T-Mobile CEO John Legere has shown he can trash-talk, but he may soon have to show that he can sweet-talk as well. Per Bloomberg, New Street Research analyst Jonathan Chaplin says that T-Mobile and MetroPCS (PCS) right now “don’t have enough votes” among MetroPCS shareholders to get their proposed merger approved. The merger’s prospects are apparently so bad right now that Chaplin says T-Mobile parent company Deutsche Telekom “would be crazy to let it go to a vote” and that it will have to “sweeten” its offer if it hopes to win shareholder approval. MetroPCS shareholders are scheduled to vote on the proposed merger at a special meeting on April 12th.
T-Mobile CEO John Legere may come to regret publicly slamming the “greedy hedge funds” opposed to his company’s merger with MetroPCS (PCS). The Wall Street Journal reports that the influential Institutional Shareholder Services (ISS) is advising MetroPCS shareholders to vote down the proposed T-Mobile merger at their meeting on April 12th. ISS, which the Journal says “advises big shareholders how to vote in corporate elections,” claims that MetroPCS shareholders will not get fair value in the proposed merger and believes that MetroPCS still has the potential “to continue to thrive as a stand-alone company.” T-Mobile and MetroPCS received full regulatory approval from the United States government for their merger earlier this month and now must only gain approval of MetroPCS shareholders to make the deal official.
T-Mobile CEO John Legere strikes a rather populist tone compared to your typical businessperson and now he’s going after “greedy hedge funds” who are allegedly trying to block his company’s merger with MetroPCS (PCS). Per Bloomberg, Legere this week expressed confidence that MetroPCS shareholders would vote in favor of merging with T-Mobile “despite the greedy hedge funds that are trying to take a double-dip out of that process.” Legere went onto explain that big hedge funds who own large stakes in companies typically make a lot of noise during acquisitions because they want “to get more money” through empty sabre rattling. Legere also made headlines this week when he described rival carrier AT&T’s (T) mobile plans as “the biggest crock of s—” he’s ever seen.
T-Mobile and MetroPCS (PCS) on Thursday announced that they’ve passed through every regulatory hurdle for their proposed merger and now must only get approval from shareholders to finalize the deal. The final regulatory domino fell on Wednesday when the Committee on Foreign Investment in the United States told T-Mobile parent company Deutsche Telekom that it didn’t have any objections to the proposed merger. Now that the two wireless carriers have passed the muster with regulators, they have to convince MetroPCS shareholders to approve the merger during a special meeting on April 12th. This could be easier said than done, however, because some shareholders last year filed a lawsuit to block the merger while accusing the companies of “cheating shareholders” by “drastically” undervaluing MetroPCS’ worth. Deutsche Telekom’s full press release is posted below. More →
Sorry, AT&T (T) — it seems that the Federal Communications Commission is willing to let T-Mobile merge with another company after all, as long as it doesn’t involve you. Bloomberg reports on its Twitter account that the FCC has approved the proposed merger between T-Mobile and MetroPCS (PCS), which still has to be approved by MetroPCS shareholders to become official. This last step could be particularly tricky, however, since some shareholders last year filed a lawsuit to block the merger while accusing the companies of “cheating shareholders” by “drastically” undervaluing MetroPCS’ worth.
The proposed merger of No.4 wireless carrier T-Mobile USA and MetroPCS (PCS) cleared a major hurdle earlier this week, but some troubling news accompanied the win: more than 100 T-Mobile employees are reportedly set to lose their jobs. The Seattle Times reports that more than 100 people in T-Mobile’s marketing group and across other departments will be laid off during ”integration” meetings scheduled to take place on Thursday. T-Mobile employed approximately 36,000 people across the country in 2012. MetroPCS shareholders will convene on April 12th to vote on the merger, which is still being reviewed by regulators.
T-Mobile’s proposed merger with prepaid wireless carrier MetroPCS (PCS) got a little bit closer to becoming a reality on Wednesday after the United States Department of Justice declined to file any objections within the waiting period required by U.S. antitrust laws. Fox Business reports that the merger still needs “approvals from the Federal Communications Commission, the Committee on Foreign Investment and MetroPCS shareholders” to go through, so the deal still has a way to go before being finished. Getting MetroPCS shareholder approval could be particularly tricky since some shareholders last year filed a lawsuit to block the merger while accusing the companies of “cheating shareholders” by “drastically” undervaluing MetroPCS’ worth.
While voice over LTE technology is seen as the future of the mobile industry, recent tests have found that the it could reduce a smartphones battery life in half. According to a report from ST-Ericsson, however, next-generation LTE radios with VoLTE capabilities will actually increase battery life and reduce power consumption by 50%. In addition to being more efficient, the technology has special protocols that would improve call quality by reducing signaling overhead and improve performance in weak coverage points. VoLTE could be the beginning of the end for minute-based voice plans since calling and messaging will be sent through a carrier’s data network. MetroPCS (PCS) has already launched VoLTE in select markets and Verizon Wireless (VZ), the nation’s largest carrier, has announced plans to utilize the technology in 2013 with widespread availability slated for early 2014.
High-end smartphones priced at $200 or higher made up more than 83% of the market last year, according to Informa. That share is expected to drop to 33% by 2017, however. The research firm predicts that by 2017 affordable smartphones, or those priced below $150 with no contract, will account for a majority of sales, CNET reported. The shift in the mobile industry isn’t good news for smartphone manufacturers, which are expected to see smaller profit margins as prices continue to drop. The market of the future is expected to become increasingly split between high-end smartphones that continue to be heavily subsidies by wireless carriers, and cheaper prepaid devices. More →