T-Mobile and Sprint announced plans to merge on Sunday in a $26 billion deal.
The new combined company which would retain the T-Mobile name will be led by John Legere as the CEO and Mike Sievert as President and COO.
Tim Höttges, current T-Mobile US Chairman of the Board, will serve as Chairman of the Board for the new company. Masayoshi Son, current SoftBank Group Chairman and CEO, and Marcelo Claure, current Chief Executive Officer of Sprint, will serve on the board of the new company.
Deutsche Telekom will hold 42% of the equity in the new company, with Softbank owning 27% and the remaining 31% to be held by public investors, according to Bloomberg.
The New T-Mobile will have the network capacity to rapidly create a nationwide 5G network with the breadth and depth needed to enable U.S. firms and entrepreneurs to continue to lead the world in the coming 5G era, as U.S. companies did in 4G, said the companies in a statement.
The combined company will have lower costs, greater economies of scale, and the resources to provide U.S. consumers and businesses with lower prices, better quality, unmatched value, and greater competition.
The combined company plans to invest $40 billion over the next three years, largely to support the rollout of its 5G network.
John Legere, CEO, T-Mobile
This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own.
Marcelo Claure, CEO, Sprint
We intend to bring this same competitive disruption as we look to build the world’s best 5G network that will make the U.S. a hotbed for innovation and will redefine the way consumers live and work across the U.S., including in rural America.
