Deutsche Telekom had given up on selling its T-Mobile stake before Iliad bid

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Just in case you missed it, Iliad formally dropped its interest in T-Mobile US yesterday. The French telecom company had raised its bid from $33 per share for 56% of the company to $36 per share for 67% of the company, and was rejected swiftly by Deutsche Telekom and T-Mobile. But according to Reuters’ sources, the German carrier had long since given up on selling its controlling stake in T-Mo. Deutsche Telekom is keen for T-Mobile US to become a self-sustaining company, requiring no further investment from DT.

In the past, it was no secret that DT was looking to sell. And it had wanted to “reduce its exposure to the U.S. business” before the low-frequency spectrum auction next year. An auction which could cost T-Mo billions as it tries to secure a good amount of spectrum.  However, Tim Hoettges, Deutsche Telekom’s CEO and his team have been pleased by the U.S. carrier’s turnaround. It’s made a lot of progress, especially during the past 9-12 months.

“They believe that T-Mobile can take care of itself, a person close to the German firm’s management said. “That has been Tim’s objective ever since he merged the company with MetroPCS last year.”

The tactic now: “de-risking, self-funding and kingmaker.” 

This has to be the best news for T-Mobile, its employees, customers and fans. We need a bit of stability now. We’ve had rumors of buyouts for the past year. In fact, since I took over the site in November last year, I don’t think a single month has gone by without some rumor or another. Whether it’s Sprint, Dish, Iliad or someone else. The narrative has been: T-Mobile’s up for sale, or: T-Mobile needs a merger to survive.

Then three really successful quarters and a return to revenue growth occurred. Now T-Mobile is the most attractive carrier in the States. It’s cool, it’s growing, and it’s taking customers from its competitors.

Our only concern now should be how T-Mo is going to fund its expensive spectrum bids over the coming months, as well as continue with its aggressive network upgrades and expansion.

Source: Reuters

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  • Jose Hernandez

    Best news I’ve heard in a while. Go T-Mobile us!

    • Mirad77

      And soon TMO will nos 3.

  • sushimane

    thats what im saying. tmobile could eventually be their own separate company with dt little help if tmobile plans on buying them self out from dt.

  • W0ooo doggie!! That’s what I’m talking about. :D #MagentaNation

  • Willie D

    Makes me nervous that TMUS won’t have the investment of cash for the 600mhz auction next year due to lack of DT wanting to invest. Which is fine, abandon completely and see how well it goes without a powerhouse telecom behind it, like AT&T has, like Verizon has and now like Sprint has.. Very skittish on this news.

    • T-Mobile has cash set aside for the 600mHZ auction already, besides its not as if T-Mobile US ever got very much cash from DT including through this Entire “UnCarrier” movement. I don’t see your argument as anything much really.

      • Chad D

        Didn’t tmo set up a partnership with sprint specifically to buy spectrum at this auction?

        • guyfietti

          They tried to. It was blocked by the FCC

    • Maximus

      Skittish? DT and TMO is saying they don’t need to be bought out or any additional investment and that makes you nervous? Maybe you don’t know how business works, but this is a good sign. I would be nervous if they were eagerly seeking a buyer or had to borrow a significant amount. You should be anything but nervous.

    • Logan S

      “How well it goes without a powerhouse telecom behind it, like AT&T has, like Verizon has”
      Those two have always been the US “powerhouse telecom,” so I don’t get what you’re saying. They’ve had plenty of groundwork laid out to their advantage before DT ever touched VoiceStream.

      But I agree, I think Tmo still needs the financial backing for it to get its network and spectrum built out to sustain its current outlook.

  • Jay J. Blanco

    I’m very excited about the 4G upgrades, they are spreading like wildfire

  • Eric

    Why can’t DT just invest billions into T-Mobile? They could have a very high return if T-Mobile becomes the #1 carrier.

    • Aurizen

      I think that would take 15 years and a lot of money. The 15 years is what John Legere said someone told him estimating the current grown and what it would take to be on top. We’re still waiting on wideband LTE in philly :(

      • CalicoKJ

        Many of us in ID are still waiting for something other than EDGE…

      • Eric

        :(

        • Aurizen

          Wideband is available!

        • Eric

          Woo!

      • Mike

        Someone should tell TMO that we are still waiting in Phila for wideband LTE. According to Customer Service Reps, Phila and surrounding area has a very robust LTE signal. They do their damnedest to convince you of just how strong their LTE signal is in the Phila Metro area. It’s rather pathetic that we are forced to use all this signal boosting crap and wifi calling features to compensate for poor signal strength. There’s hope for TMO but don’t forget Phila.

        • Patrick Sullivan

          I’m in the suburbs of Philly and I have great LTE signal everywhere and especially when I go into the city

        • Aurizen

          wideband is available now :)

    • philyew

      The DT investment in TM USA was a problem from the start. It cost them ~$55 billions in acquisition and assumed debt costs to pick up the component parts of the company (Voicestream etc) and the total subscriber base that it brought in was less than 10 millions. Compare that to the value placed on the company in the AT&T, Softbank and Iliad offers, which all value a considerably enlarged company at a lower price.

      Since buying the company, they have already had to invest $ billions in spectrum acquisition and network modernization, at the same time acting as the disruptive force in the market through discounted pricing. With events and market needs in other regions, it was never a sound proposition for DT to inject funds directly and the funding alternatives, used for the investments in the last year, have increase the debt load and reduced DT’s ownership share.

      Getting to the #3 position in the next couple of months will still leave them massively adrift of the #2 placed carrier. Things are going well here, but they are not in a position to see huge amounts of funding directly injected from DT. It will, however, be interesting to see how they go about raising the funds to adress the spectrum auctions that they intend to participate in.

  • kev2684

    YASSS!

  • vinnyjr

    Great news for all T-Mobile customers and employees. This is the kind of news that will also increase the customers, many possible new customers were worried about a possible buy out, now this positive news should put the pedal to the metal. T-Mobile has increased it’s LTE and HSPA+ footprint by 25% in the last 6+ months. That is just unbelievable from a Carrier that many were laughing at, T-Mobile has turned the Mobile industry completely around, not bad T-Mobile. This long time customer couldn’t be happier. Thank You John Legere and Team, Thank You T-Mobile.

  • Frau Engel

    Wunderbar!! Ich befürworte diese.

  • seattle tech

    I use to be a cell dealer for t-mobile cingular sprint verizon nextel att. I had all of them in house. Out of all the carriers t-mobile always treated me with respect and didn’t try to rip me off. The other carriers only cared about cutting commissions constantly. Without T-mobile your att and verizon bills would probably be about 25-50 percent more with about 50 percent less data. Verizon and Att remind me of the star wars evil empire and t-mobile is the rebel alliance.

  • analyzethis

    Dish will make a bid after the AWS auction and they have a US customer base which was a requirement for a sale.

    • KingKong

      It can make TMUS better

  • notyourbusiness

    Yes! This is really awesome news. I’m one happy longtime T-Mo customer!

  • Jsun

    Good to see DT has gained confidence in TMobile. Hopefully now they can fully focus on expanding and fulfilling customer needs while making their profit. I’m very curious for going to happen now.

  • #Tmo_Divorce

    *News flash*

    T-Mobile ending it’s Advantage Program with everyone except the government and military. How pathetic is that? It’s a good thing they are “UN-carrier”. Now I can go to the competition! HA!

    • You are Pathetic, you’re not even a convincing troll. lol

      • #Tmo_Divorce

        Do your research and get your head out of your @$$ moron!

        • Anonymous

          It is the truth looks like

        • es

          Have fun paying Cricket for useless LTE.

        • #Tmo_Divorce

          I got three words

          “A” wesome “T”ime “&” “T” hanks

        • Mirad77

          That’s four words unless in your world “and” is not a word.

        • #Tmo_Divorce

          “An ampersand is a logogram “&” representing the conjunction word “and”.”

          Like I said I have three words.

          “Rethink possible”

        • ditch your contract

          I’M GLAD SOMEONE HERE HAS HUMORE.
          AWESOME!

        • kalel33

          What’s “humore”?

        • ditch your contract

          GOOD CATCH. LOL

        • Mirad77

          Yeah, the thing is we all would like to use English how we see fit but the problem we face is that some of our choices makes the use of English wrong. Don’t let me stop you though, by all means do yourself some good how you see fit.
          You must think before you can rethink.

        • #Tmo_Divorce

          Thanks, I already did. I used my free unlock code from Tmo and switched to AT&T.
          Rethink possible
          ;)

        • Chris

          From your own quote:

          “An ampersand is a logogram “&” representing the conjunction word “and”.”

          If it’s representing a word, then technically you have 4 words…
          Don’t know why you keep saying 3… You must have failed math in school.

    • Pink Who?

      Good to know. I’m glad T-Mobile unlocked my phone. :)

    • gmo8492

      They annouced that months ago, not like I ever got a discount to begin with. Its still cheaper than Verizon or At&t. Not to mention that T-Mobile’s aggressive pricing is what’s currently keeping prices down for the rest of us. Just think about by that #failtroll

      • #Tmo_Divorce

        Get back to me when T-Mobile files for chapter 11. HA HA HA HA!

        • gmo8492

          Get back to me when you stop being ignorant troll bait.

        • #Tmo_Divorce

          Hey Leprechaun,

          Go find JL some pot of gold to expand your worthless 2G crap you offer.

    • VicRooLoo

      All it covered was the taxes, roughly 10 bucks saved.

      I’m sure that with other providers you’ll end up paying much more than that for similar service.

    • josephsinger

      Yeah, we all know how flashy it is to leave in flames. Flame out!

  • SayWhat

    I guess u can’t buy out contracts and give discounts with the advantage program.
    This sucks! :(

  • BringBackAdvantageProgram

    WTF

  • dontsh00tmesanta

    awesome

  • redman12

    BE VERY AFRAID OF BATMAN -JOHN LEGERE :D

  • #Tmo_Divorce

    Cross me off your ARPU list Mr. CEO! This is what happens when you don’t put the customer first and take away their discounts @$$ O! At least now I have coverage in remote areas with 4GLTE and not 2G with Tmo. Even Sprint has more coverage outside metro areas.

    • NinoBr0wn

      Cool?

    • josephsinger

      Have fun wherever you go. We’d say we’re going to miss you but we believe in being honest.

    • JJCommonSense

      Sorry it didn’t work out.. Thanx for stopping by… wait.. don’t forget your iPhone charger.. you may need it out there in the wilderness. .

    • Jared Wolfe

      Sorry to hear that. You got to do what you got to do. I live Colorado in the metro area and I have excellent coverage. My wife is from Nebraska and we travel the sticks a lot out there to visit family. I roam while Im off I-80. I still have coverage. It may not be 4G LTE but I still have voice. T-Mobile is working very hard on its network right now. They are currently upgrading ALL 2G towers to 4G LTE. Dont believe me? See link below.

      Please try and keep an open mind when it comes to T-Mobile. See where there are at in 6mo to 1 year from now. The company is turning around.

      www(dot)phonearena(dot)com/news/Verizon-and-T-Mobile-continue-to-spend-more-on-their-networks_id61679

    • JTM

      Put a cork in it and get the f out.

      • #Tmo_Divorce

        SUKA!

    • Christopher Olson

      Good luck with that, even without the discount it’s much more value than any other carrier has to offer.

    • blokeinusa

      You can get ARPU from ATT&T and still pay twice as much more than Tmo without ARPU. If your getting a 10% discount on a $160 plan, is it really a deal when you can get it for $100?

    • Chris

      Company Discount was an agreement between your current employer and T-mobile as a business unit. Don’t take it personally. It’s T-mobile’s right to start a yearly employer verification and it’s also their right to cut off that agreement with any business they want to.

    • Mirad77

      You are a bitter looser aren’t you. You’ve been hiding behind your employer and receiving discount and as soon as that goes south you start calling TMUS names. What a douche. I came to TMUS in 2003 from AT$T, with one line and today I have four lines with never any discount from no one but TMUS for loyalty. Get it over you head and move on with your pity life. And STFU!

      • #Tmo_Divorce

        Hey Leprechaun,

        I don’t hide from no one. I speak the truth and exercise my right to expose nothin but the truth. If you don’t like it, then go the f to a communist country where competition doesn’t exist. Maybe then you and all these sour p @$$ haterzz won’t go on a rant about how special TMUS is. Their nothin out of this galaxy.

        • Mirad77

          You just said it all.

    • TechHog

      k

  • Zander

    I’m glad to hear this, as someone who wants to switch and trying to convince my wife to switch. I have been watching this closely. I wouldn’t want to switch then have them bought by a company and raise the prices and bring back contracts.

  • Baxter DeBerry

    bonds will be the answer for alot of it im sure

  • Stone Cold

    The coverage and spectrum issues lie at the feet of DT. DT never wanted to spend the cash needed to stay competitive. TMUS has been trying very hard to improve.

  • JOKER

    What a mess here. Can’t we all just get along! Damn it!