Yesterday we reported that European wireless provider Deutsche Telekom was in talks with regional carrier MetroPCS to carry out an acquisition deal. Today, the deal is done, with T-Mobile USA officially announcing that MetroPCS will be merging with the carrier to increase customer base and attempt to take the third spot in the wireless carrier race in the US.
Yesterday, AllThingsD confirmed that Deutsche Telekom was indeed meeting with MetroPCS representatives today, and that the two companies could even come to an agreement by the end of the day. It seems there was no hesitation in the discussion, as the two have already come to an agreement. Deutsche Telekom will hold a 74% stake in the merged company, while MetroPCS will hold the remaining 26% and will also receive $1.5 billion in cash.
Based on analyst estimates, T-Mobile is now expected to have around 42.5 million subscribers and receive $24.8 billion of revenue this year. The merger is just one big step for T-Mobile to become a stronger wireless carrier in the US. They hope that the acquisition of MetroPCS will move them into the third spot in the race for the largest US wireless carrier.
John Legere, who was just recently hired as CEO of T-Mobile, said that the merger with MetroPCS "is another logical and significant step" that will allow T-Mobile "to deliver amazing, affordable and trusted 4G services, while providing opportunities to expand geographic territories and serve more customers."