T-Mobile Acquires USCellular in $4.4 Billion Deal: 'Even More Consumers Will Benefit'

May 29, 2024 04:13 AM - 5 months ago 50286

T-Mobile has agreed to a blockbuster woody to acquisition nan mostly of USCellular successful an estimated $4.4 cardinal acquisition.

As portion of nan agreement, T-Mobile will salary rate and up to $2 cardinal of USCellular's debt, depending connected nan statement reached betwixt T-Mobile and US Cellular's indebtedness holders upon closing.

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The caller woody will springiness UScellular customers entree to T-Mobile's 5G technology, pre-existing plans, and customer work operations. Areas antecedently uncovered by USCellular will besides now beryllium accessible to existing customers done T-Mobile.

T-Mobile said that nan merger will thrust title among different rival companies.

"With this deal, T-Mobile tin widen nan superior Un-carrier worth and experiences that we're celebrated for to millions of UScellular customers and present them lower-priced, value-packed plans and amended connectivity connected our best-in-class nationwide 5G network," said Mike Sievert, CEO of T-Mobile, successful a company release. "As customers from some companies will get much sum and much capacity from our mixed footprint, our competitors will beryllium forced to support up – and moreover much consumers will benefit."

USCellular said successful a separate release that nan caller statement will manus complete each of its wireless operations to T-Mobile, including those successful "underserved" and "rural" areas who antecedently had small connectivity.

"The decisions we announced coming are successful nan champion interests of our customers and our shareholders," said Laurent Therivel, CEO of UScellular. "We are committed to serving nan needs of our customers and supporting our associates arsenic we activity to complete nan transaction."

T-Mobile's acquisition of USCellular was unanimously recommended by nan independent board of USCellular and unanimously voted for support by USCellular's Board of Directors and nan Board of Directors of TDS, which owns 83% of USCellular's shares.

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T-Mobile had a beardown Q1 2024, reporting a nett income of $2.4 billion, a 22% summation from nan aforesaid play past year. The wireless institution besides saw a 4% year-over-year summation successful work revenue, an estimated $16.1 billion.

"Our exemplary is working. It's consistent. And our assurance successful it only builds pinch each passing 4th of success," Sievert said successful an earnings call astatine nan time. "We stay focused connected continuing to return stock successful wireless and broadband while delivering industry-leading maturation successful work revenue, profitability and rate flows."

USCellular was up complete 12% successful a 24-hour play upon nan news of nan acquisition arsenic of precocious Tuesday afternoon.

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