T-Mobile, Sprint confirm updated merger agreement

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Just as was rumored, T-Mobile and Sprint have now confirmed that they’ve updated their merger agreement.

The new agreement includes an exchange ratio of 11.00 Sprint shares for each T-Mobile share, up from the original agreement of 9.75 Sprint shares. SoftBank, Sprint’s owner, has agreed to surrender 48.8 million T-Mobile shares acquired in the merger to the New T-Mobile, making SoftBank’s effective ratio 11.31 shares per T-Mo share.

Sprint shareholders other than SoftBank will continue to get the original fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share, or the equivalent of 9.75 Sprint shares for each T-Mo share.

Following the closing of the merger, T-Mobile parent company Deutsche Telekom will hold approximately 43% of New T-Mobile’s shares while SoftBank will hold 24% and the remaining 33% will be held by public shareholders. The previous deal saw DT getting 42%, SoftBank getting 27%, and public shareholders getting 31%.

The updated agreement has an outside date of July 1, 2020. The outside date is when the parties have agreed that if a merger has not closed, either side can walk away from the deal.

T-Mobile and Sprint’s merger agreement previously lapsed on November 1st, 2019, and so that’s why the two companies have struck an updated agreement today. Since the merger was first announced, Sprint’s churn has risen and average revenue per user has fallen, and so Deutsche Telekom is said to have wanted to renegotiate the terms of the merger. Now it’s getting a slightly bigger piece of the New T-Mobile.

T-Mo reiterated today that the merger could close as soon as April 1, 2020. A judge recently rejected a lawsuit from a group of states seeking to block the deal, but the merger must still be approved by the California Public Utilities Commission and is undergoing a Tunney Act review for any potential antitrust concerns.

Source: T-Mobile

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  • SurvivingSunnyvale

    Hopefully an agreement that puts all the Sprint management into retirement.

    Especially the ones that were responsible for Nextel and Clearwire.

    • marque2

      And WiMax

      • mingkee

        T-Mobile can deploy WiMax band for fixed 5G home internet

    • riverhorse

      And the billing shenanigans.

    • Jay Holm

      So long as Neville Ray is in charge of network integration, and 5G… I’m sure all will be well!!! Hopefully ALL of the 2.5ghz will be deployed, not just 20-40mhz…. supposedly Sprint owns something like 150mhz of Band41….

      • Willie D

        I can bet you that we wont see any B41 LTE access on merger, they’re gonna rip it out and do 5G instead. And we likely wont have a network share onto Sprint at all the way Sprint can roam at home on TMo. To be fair only Sprint customers are benefitting from the merger. Meanwhile us on TMo carrying Sprint users will experience very slow speeds and lack capacity. And in SF where I live TMo has abandoned us with LTE upgrades and 5G at all. So I expect nothing to change for us. This is an AT&T market anyway.

        • marque2

          I don’t get you illogic. TMobile has never done this before and current 5g implementations run symbiotically with 4g so there would be no point in removing 4g for the heck of it.

          Only issue I see ( and I haven’t looked into it – so I don’t know) is if our phones currently can use various Sprint 4g bands.

    • Willie D

      I’ve always said every person employed by Sprint should be fired. That includes and is not limited to everyone from the top all the way down to the janitor of HQ in Kansas City as well as the gardener of HQ and anyone who works for Ericsson building their shoddy network. Sprint has the WORST people on their staff, people who dont care, never cared, and never will. It’s time to clean house and bleach the whole thing out and disinfect it all. TMo should NOT rehire or merge ANY Sprint employees into the TMo brand. Sprint is a TOXIC culture.

  • Jason Caprio

    We’ve been hearing about this merger for over 3 years now. It is unbelievable how long these things take. I guess it will be another year before we know the final outcome lol

    • Website Administrator

      April 1…

      • Jason Caprio

        Key words “could close”. I guess July 1 is the day we’ll know for sure.

    • Blame the government for that, it’s all their regulations and anti-trust investigations/lawsuits that have delayed it so far. Yet when entertainment monopoly Disney wanted to merge with Fox, they didn’t bat an eye.

  • Willie D

    Personally I think Softbank, who’s notorious for being stingy with Sprint, should not even be getting 24% or even 10% of this company. They failed Sprint and the American market, so it’s time for them to either give up and leave or start heavily investing. That means for every $1B spent on network, I expect Softbank to kick down $250M and not just sit on their asses like they did with Sprint. Masayoshi Son wanted a merger so bad now hes got it and now consumers are demanding heavy investment.

  • Trill Will

    My service will degrade post merger since T-Mobile doesn’t like to invest in my market. I’m currently getting on average around 160 Mbps down and 10 Mbps up on Sprint. I had T-Mobile back in 2018 and half the time I was connected to 2G and when I did connect to LTE I constantly dropped calls, had failed messages and very slow data. Hopefully T-Mobile is better this time around, because even though I have great speeds on Sprint I hate having to roam on AT&T’s network.

    • I’ve had the opposite experience, great speeds on T-Mobile, but Sprint’s service in my area is piss-poor. On Sprint I was lucky to get a signal and when I did it was under 1mbps even though is was labeled as LTE. Every area is different, hopefully the combined network of T-Mobile and Sprint fixes those coverage gaps.

      • Will

        That’s what I hope will happen as well but if not I’ll just have to go with AT&T since Verizon suffers from congestion.