T-Mobile, MetroPCS Merger Approved
MetroPCS Will Technically Acquire T-Mobile
As leaks had suggested yesterday
, Deutsche Telekom's board this morning approved a deal that would combine T-Mobile and MetroPCS. According to the Wall Street Journal
, the deal will exist as a reverse merger, with MetroPCS technically acquiring T-Mobile, but retaining the T-Mobile brand. That move provides Deutsche Telekom with a publicly-traded stock they could sell over time to reduce their U.S. ownership stake (their interest in the U.S. market has long been tenuous). Deutsche Telekom shareholders will own about 75% of the combined company, and keep about $15 billion of the company's debt. Even after the merger T-Mobile would remain the nation's fourth-largest wireless carrier behind Sprint.Update
: T-Mobile has made it official, launching this press release
and a video
with more detail.