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tanzam75

join:2012-07-19
reply to dotditdot

Re: What happens now for us T-Mobile subscribers?

said by dotditdot:

Nothing changes. The same execs running T-mobile will run the new company; T-mobile parent company, Deutsche Telekom, stills own 74% of the company, so nothing will change. This merger was just a convenient way for them get subs, spectrum, and a way to easily list T-mobile US on the market.

Deutsche Telekom is paying $1.5 billion in cash, but MetroPCS had a market cap of $4 billion before the merger was announced. So the majority of the merger price comes in the form of shares, rather than cash.

This is thus a combination of a merger and an acquisition. Deutsche Telekom used to own 100% of T-Mobile USA. They're dropping down to 74% of the combined company. The difference of 26% consists of the shares that they're turning over to the shareholders of MetroPCS.


buddahbless

join:2005-03-21
Premium
Reviews:
·T-Mobile US
·AT&T DSL Service
said by tanzam75:

. Deutsche Telekom used to own 100% of T-Mobile USA. They're dropping down to 74% of the combined company. The difference of 26% consists of the shares that they're turning over to the shareholders of MetroPCS.



Exactally.. the best way to look at this is "cup half full" approach. Don't be dissuaded by TMO loosing a 26% stake in there company, look at it as TMO now owns 74% of Metro PCS.