It's Official: T-Mobile-Sprint Merger Closes To Create 'New T-Mobile'
T-Mobile has officially closed its merger with Sprint. The new wireless giant also has a new CEO: T-Mobile's former COO, Mike Sievert.
After nearly two years of planning and negotiations, wireless giants T-Mobile and Sprint have become one.
T-Mobile announced on Wednesday that it has officially closed its merger with Sprint, and the two companies will now form "the New T-Mobile," despite the California Public Utility Commission continuing to review the deal.
T-Mobile US will continue to trade on the Nasdaq as TMUS and Sprint will no longer trade on the NYSE, the companies said. T-Mobile's stock was up 2.86 percent to $86.15 per share on Wednesday morning.
With the close of the deal, T-Mobile's outspoken CEO John Legere is officially passing the torch to Mike Sievert, the company's COO who will become CEO of the combined company, effective immediately.
“During this extraordinary time, it has become abundantly clear how vital a strong and reliable network is to the world we live in. The New T-Mobile’s commitment to delivering a transformative broad and deep nationwide 5G network is more important and more needed than ever and what we are building is mission-critical for consumers,” Sievert said in a statement “With this powerful network, the New T-Mobile will deliver real choice and value to wireless and home broadband customers and double down on all the things customers have always loved about the Un-carrier. T-Mobile has been changing wireless for good — and now we are going to do it on a whole new level!”
Bellevue, Washington-based T-Mobile and Overland Park, Kansas-based Sprint announced their intent to merge two years ago in April 2018.
The two companies in July received approval from the U.S. Department of Justice (DoJ) under certain conditions. The combined company hade to divest Sprint’s prepaid businesses and Sprint’s 800 MHz spectrum assets to satellite TV provider Dish Network. The New T-Mobile now must provide Dish wireless customers access to its network for seven years and offer standard transition services arrangements to Dish during a transition period of up to three years.
In October, the $26.5 billion merger passed another hurdle when it received approval from the Federal Communications Commission (FCC). The FCC's permission was granted on the conditions that Sprint would promise to deploy 5G service to cover 97 percent of the American people in three years and within six years to reach 99 percent of all Americans. Both companies also pledged at the time that 90 percent of Americans would have access to mobile service with speeds of at least 100 Mbps and 99 percent of Americans would have access to speeds of at least 50 Mbps within six years.
After receiving approval from the two governing bodies, a group of 13 states and the District of Columbia sued to block the deal, calling it "anticompetitive" for consumers. The Federal court came back with its decision to allow the merger to move forward in February.