T-Mobile and Shentel reach acquisition agreement, deal expected to close in Q2 2021


A few months ago, we learned that T-Mobile had decided to buy the wireless business of long-time Sprint affiliate Shentel, but the two parties couldn’t agree on a price. Now it looks like they’ve finally come to an agreement.

Shentel has come to an agreement with T-Mobile on how to value its wireless business so that T-Mo can acquire it. The appraisers that’ll set the value of Shentel will use July 1, 2020 as their valuation date and they’ll assume that the T-Mobile-Sprint merger did not occur, meaning Shentel would have continued access to Sprint’s brands and spectrum and the impacts of the merger are disregarded.

It’s expected that the appraisers will complete their valuation of Shentel’s wireless business on or around January 20, 2021. T-Mobile’s acquisition is expected to close in the second quarter of 2021.

Shentel operates its wireless business in parts of Virginia, West Virginia, Kentucky, Ohio, and Pennsylvania and, as of earlier this year, served 1.1 million customers. Shentel has been a Sprint affiliate since 1995, and as part of that agreement any company that acquired Sprint could also acquire Shentel for 90% of its “entire business value”.

The issue with T-Mobile is that the two companies couldn’t come to an agreement on the appraisal of Shentel’s assets. The deal could have gone into arbitration if T-Mo and Shentel couldn’t reach an agreement, but the two companies finally found terms that were agreeable to them both on November 3.

Thanks Ben!

Source: Shentel (GlobeNewswire)

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  • JG

    What exactly will Tmo gain from this merger?

    Obviously the 1.1 million subscribers… But beyond that ?

    Does Shantel bring any additional spectrum to the new network? More towers?

    • Sharti24

      Their debt

    • Curtis Torres

      More towers more coverage and more band 41 spectrum

    • Shaun Michalak

      As far as I know, it is mainly.. maybe some towers.. actually, I believe that Shantel runs the backbone of the network for the towers in that area.. oh yea, and customers of course.. but no spectrum.. Shantel did have some spectrum, but they traded that to Sprint a few years ago with the agreement that Shantel could use Sprints name and be the sole seller and distributor of Sprint service in their area.. So Sprint lost all the customers in the Shantel areas, but they gained all the spectrum that Shantel had in place of it.. and of course, Sprint still got the kickback to use their network too..

      The thing is, Since T-Mobile bought them out, T-Mobile has almost no customers in the Shantel areas, so in order to absorb their customers, they have to buy them out.. So basically, Shantel is kind of like a MVNO using Sprints name. But if T-Mobile did not buy them out, I imagine that they would have to make an agreement to let them continue as a MVNO off of the T-Mobile network, and T-Mobile would have to try and entice Shantel’s customers to come over from Shantel.. Buying them out, they do not have to worry about areas of service, and can just combine everything into one company..