The rumors of a T-Mobile/Metro PCS merger have been burning hot over the past 24 hours and it appears for good reason. The merger is real and was announced by T-Mobile a short while ago. T-Mobile USA will be merging with Metro PCS in a $1.5 billion deal. Not only will MetroPCS Shareholders receive $1.5 Billion in cash, but they will also have a 26% ownership in the combined company. Not a bad deal if you ask me.
After the failed AT&T buyout, T-Mobile seemed to all but give up. Sinking to the bottom of the mobile carrier totem pole, they’ve reached desperation. Despite what T-Mobile’s CEO John Legere says in the below video, this is “a deal to survive.” Not only will this bring more subscribers but it also gives T-Mobile something it’s been sorely lacking — LTE.
The merger won’t take place until next year, but it’s exciting nevertheless. For the full skinny on this announcement, we’ll hand over the helm to T-Mobile’s CEO John Legere.