Here we go folks. This morning Bloomberg and Reuters are reporting that MetroPCS shareholders have approved the deal which would have the nation's fifth largest carrier merge with T-Mobile USA, who is currently the country's fourth largest. The deal received the A-OK from the FCC back in March, and it looks like it's really happening now.
This deal between MetroPCS and T-Mobile was expected to close in the first half of 2013, and it was first announced last year. The deal would move over 9 million MetroPCS subscribers over to T-Mobile's struggling GSM network. Back in March, the merger was voted on but since then T-Mobile's parent company, Deutsche Telekom had sweetened the deal. Deutsche Telekom overseen a huge restructuring since their failed attempt at selling T-Mobile USA to AT&T back in 2011. This resulted in the loss of thousands of jobs, hiring a new CEO (which we all really like John Legere), a rebranding along with a huge yet bold LTE rollout plan, where T-Mobile is expecting to cover 200 million people by the end of 2013.
So it looks like we are finally going to see these two carriers merge. This is a good thing for both sides. It allows Deutsche Telekom to get out of the US, which they are desperately wanting to do. It also gives T-Mobile quite a bit more spectrum. We're going to keep our fingers crossed, but here's to hoping this will help T-Mobile improve their coverage so more and more users can take advantage of their Simple Choice plans they announced not to long ago.
How many of you are excited about this merger? Out of all the T-Mobile and MetroPCS customers out there, are you going to jump ship over this merger? Let us know in the comments down below.
Editor's Note: This story is still developing, and we'll post more information once it becomes available, so keep checking back.
This transaction would give T-Mobile USA wireless spectrum that's needed to provide faster data services to compete with the likes of AT&T and Verizon.
The improved terms for this deal include shareholder loan of $11.2 billion from $15 billion and trim the interest rate by half a percentage point, which won the vote from MetroPCS shareholders this morning. The deal gives Deutsche Telekom a 74% stake in the merged entity and MetroPCS shareholders a $1.5 billion cash payment. The new company will also be exchange-listed and Deutsche Telekom will be barred from selling shares on the market for 18 months.