Yesterday, the news finally got out of a merger between MetroPCS and T-Mobile and whilst we had been suspecting as much for some time it was interesting to see just how the merger will play out. Of course, there could well be bumps along the road yet but, it’s highly unlikely that regulators will have anywhere near as much interest as they did with the AT&T merger that ultimately fell through.
The interesting part of the whole thing is how Deutsche Telekom has set the whole thing up – it might be a reverse merger with MetroPCS taking over T-Mobile yet, Deutsche Telekom will retain 74% of stock in the new company, the new “T-Mobile”. That’s some decent positioning from the German company, ensuring the new company becomes listed on the stock exchange – like MetroPCS is now. This doesn’t sound like an exit strategy but it’s played right in to their hands as they now have the choice to slowly sell off their shares in the company once the merger is done. Helping Deutsche Telekom to slowly sneak out of the door of the US market.
Financially, T-Mobile wasn’t exactly dying and they’re still running in the black but it would take a hell of a lot of work to bring the company to parity with Sprint or even overtake them. This money and effort is something that Deutsche Telekom clearly doesn’t want to do and now they have no need to – in a years they’ll be clean shot of the whole network. T-Mobile’s US operations have been dragging down their presence in other markets and it looks like they’ve found the perfect getaway car. What will come of the new company is anybody’s guess right now but it’s starting to look like T-Mobile mean business when it comes to getting back in the big leagues.