T-Mobile to merge with Sprint
US mobile operators T-Mobile (TMUS) and Sprint (S) agreed to merge in April. As per the merger agreement, each Sprint shareholder will receive 0.1 shares of T-Mobile. The combined entity is anticipated to be worth $146.0 billion. The companies expect to close the transaction no later than the first half of 2019 subject to regulatory approvals and other customary closing conditions. Accordingly, a US Senate committee has planned to hold a hearing related to the proposed merger on June 27 to oversee antitrust issues.
The combined company expects more than $6.0 billion in annual run-rate synergies with a net present value of approximately $43.0 billion. T-Mobile believes that the merger will reduce expenses by eliminating duplicate work roles. T-Mobile and Sprint would be able to add more jobs and deploy an improved 5G (fifth-generation) wireless network. The combined company will likely be better able to negotiate on prices with suppliers and build a bigger subscriber base amid a saturated wireless industry.
T-Mobile expects the merger to supercharge its competitiveness
T-Mobile and Sprint believe their proposed merger of $26.5 billion will enable them to better compete with larger competitors AT&T (T) and Verizon (VZ). T-Mobile and Sprint are also keeping an eye on Comcast (CMCSA), which launched its own wireless service last year. T-Mobile posted total revenue of $10.5 billion in Q1 2018.
Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!
The proposed merger deal between T-Mobile and Sprint could reduce the number of major national wireless players from four to three.
T-Mobile wants to showcase its strength before its first-quarter earnings release. T-Mobile is scheduled to report its first-quarter results on April 25.
Mondelēz (MDLZ) is scheduled to announce its first-quarter earnings results on April 30.
Freeport-McMoRan (FCX) is scheduled to release its first-quarter earnings on April 25.
Ford has risen 8.2% in April so far as compared to 2.6% gains in the S&P 500 Index.
On April 22, natural gas prices settled at $2.52 per MMBtu—1.4% above the lowest closing level for active natural gas futures since June 8, 2016.
Kimberly-Clark (KMB) stock rose 5.4% on April 22 after the company released stronger-than-expected first-quarter results.