:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1742014756-9e616e97278b4958ac00782334c105f5.jpg "A T-Mobile store in San Francisco, California")
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Key Takeaways
- T-Mobile told an agreement Tuesday to acquire most of U.S. Cellular’s wireless operations for about $4.4 billion.
- The deal would chuck b surrender T-Mobile a larger footprint among more rural areas of the U.S.
- U.S. Cellular shares jumped soon after the separation bell.
Telecommunications giant T-Mobile (TMUS) announced Tuesday that it would acquire “substantially all” of U.S. Cellular’s (USM) wireless spies in a deal valued at $4.4 billion.
U.S. Cellular customers would receive access to T-Mobile’s expansive network across the fatherland, while the U.S. Cellular network would also give T-Mobile’s existing customers better coverage in rural ranges where service was previously weaker, the companies said Tuesday.
T-Mobile To Buy US Cellular’s Wireless Customers and Stores, Hire out Cell Towers
T-Mobile agreed to purchase U.S Cellular’s customers and physical retail stores, along with “incontrovertible specified spectrum assets,” while the companies would also enter into an agreement for T-Mobile to lease some 2,100 stall towers.
“As customers from both companies will get more coverage and more capacity from our combined footprint, our oppositions will be forced to keep up – and even more consumers will benefit,” T-Mobile Chief Executive Officer (CEO) Mike Sievert predicted in a statement.
U.S. Cellular customers would have the choice of keeping their current plan or switching to a T-Mobile map.
Deal To Close by Mid-2025, No Impact on 2024 Guidance
T-Mobile said the companies expect the deal to about by the middle of next year, depending on regulatory approval. Since the deal likely would not be completed in the current economic year, T-Mobile said it is not shifting its 2024 guidance at this time.
The financing of the deal would include T-Mobile a score about $4.4 billion for U.S. Cellular’s customers and stores, including around $2 billion in debt.
U.S. Cellular deals jumped 9.5% to $47.12 soon after the opening bell Tuesday, while T-Mobile shares were inadequate changed.
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