T-Mobile, one the largest telecom operator in the US has been taken over by AT&T. The owners of T-Mobile, Deutsche Telekom had announced its plans to sell T-Mobile USA. The deal was confirmed on Sunday and it is a 39$ billion dollar deal in cash and stocks. Out of the $39 billion coming out of AT&T’s pocket, only $25 billion will be in cash. The remaining $14 billion will be paid in AT&T stocks. As part of the deal, Deutsche Telekom will have 8% equity stake in AT&T.
AT&T chief executive Randall Stephenson said in a statement that, “This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future.”
As part of the merger, AT&T committed to expand its 4G network 1.2 million square miles, making it accessible to an additional 46.5 million Americans, mostly in rural and smaller communities, the statement said. The AT&T release notes that its 4G expansion would help achieve the Federal Communications Commission and President Obama’s goals to connect “every part of America to the digital age.”
The new entity would be the biggest in the US, combining AT&T’s 95 million customers with T-Mobile’s 34 million users for a total of 130 million subscribers.