deutsche-telekom

Deutsche Telekom CEO Timotheus H¶ttges, Says there are No Appealing Offers for T-Mobile USA

August 7, 2014 - Written By Alexander Maxham

For a while there, it seemed like everyone was looking to buy T-Mobile USA. But after Sprint dropped out it seemed all the other offers just weren’t as good. French carrier, Iliad put in a bid for T-Mobile, which Deutsche Telekom didn’t think was good enough to get them out of the US. Dish is supposed to be working with Iliad for a better offer for Deutsche Telekom, but Dish may put in an offer by themselves instead of working with Iliad. As Dish has been looking to get into the wireless game for quite some time.

“We’re open to a transaction that creates value for all T-Mobile US shareholders, compared with continuing the business on its own,” H¶ttges said on DT’s earnings conference call, according to Bloomberg. “Right now, there’s no such offer on the table.”

They are looking at Iliad’s current offer, but do believe it’s too low. However, that may change soon as Iliad is working with some cable and satellite providers in the US to sweeten the offer for DT. Regulators were happy that Sprint dropped the T-Mobile merger, as they really want 4 carriers in the US and don’t want further consolidation. And I didn’t see it as very likely to go through, especially after they rejected AT&T buying T-Mobile a few years ago.

Obviously, Deutsche Telekom is still looking to get out of the US for the most part. Although they do want to keep a small stake in T-Mobile USA. However, they aren’t as anxious to get out now as they were a few years ago, when AT&T attempted to pick up the magenta carrier. Since that deal fell through T-Mobile plummeted pretty hard, and were bleeding customers like crazy. But when they hired John Legere as their new CEO, they began to turn it around, to now they are adding a ton of customers each quarter and actually making money. So that Deutsche Telekom isn’t as anxious to get out of the US now.

It’ll be interesting to see who else attempts to buy T-Mobile in the next few months or years. But I still find it hard for another US carrier to try and buy T-Mobile, and get it approved by the FCC.