"The combination of T-Mobile and MetroPCS creates an even stronger disruptive force in the U.S. wireless market," said John Legere, President & Chief Executive Officer of T-Mobile US, Inc. "Together, as America's Un-carrier, we'll continue our legacy of marketplace innovation by tearing up the old playbook and rewriting the rules of wireless to benefit consumers."
T-Mobile is flying high after complete a deal with MetroPCS. Image Source: Flickr (pail.hsieh)
By coming together, the combined company can claim around 43 million subscribers, with T-Mobile, the No. 4 carrier in the U.S., effectively adding 9 million MetroPCS customers to its own 34 million. Even with the additions, however, T-Mobile remains behind Spring Nextel. Had the two completed a transaction way earlier, their 2012 financial results would have reflected $24.8 billion in revenue and $2.7 billion of free cash flow.
Under terms of the deal, MetroPCS effected a 1 for 2 reverse stock split, made a cash payment of $1.5 billion to its shareholders, and acquired all of T-Mobile's capital stock from Deutsche Telekom in exchange for around 74 percent of MetroPCS's common stock on a pro forma basis, MetroPCS said.
The new company will stay headquartered in Bellevue, Washington and will be led by President and CEO, John Legere, with former MetroPCS Vice Chairman and CFO, J. Braxton Carter, serving as CFO.