T-Mobile SIM

Shareholders of MetroPCS are planning to hold a vote on March 28th to approve its previously-announced reverse merger with T-Mobile USA. The deal has been in the works for several months, and is technically a "reverse merger" because MetroPCS will be buying T-Mobile, even though it is the smaller company. Deutsche Telekom currently owns T-Mobile USA, and will have a 74-percent stake in the new company if the merger is approved. But because MetroPCS is a publicly held company, the shareholders must vote to approve the deal before it can go any further

Two different hedge funds -- P. Schoenfeld and Paulson & Co. -- which hold 2.3-percent and 8.7-percent of MetroPCS shares respectively, have expressed that they will vote against the merger. These funds believe MetroPCS shareholders aren't getting enough from the deal, which at this point is about $4.09 per share (or $1.5 billion in cash) and the remaining 26-percent of the newly merged company.

While the funds continue to urge other shareholders to consider voting against the deal, the MetroPCS board of directors is supporting the deal, as is Deutsche Telekom. The terms could certainly change before this becomes final, but at this point it looks as though MetroPCS and T-Mobile will indeed merge in the coming months, combining the 4th and 5th largest carriers in the U.S.

Source: MarketWatch

There are 20 comments

radgatt says:

I hope this goes through. This could bring tmobile up in the eyes of us. . Citizens

Tmobile is the perfect place a very consistent network with great devices. I took my 2 lines from Verizon to tmobile June 2012 and haven't looked back. This merger will happen.

I agree. I joined T-Mobile with an unlocked Nexus 4 from Google Play and have no complaints. Really, HSPA+ has been faster than LTE on my Verizon phone. I live in Seattle.

tailsthecat3 says:

I just switched from vzw to tmo and I am very satisfied. Nexus 4 doesn't hurt either. Hopefully T-Mobile remains as such and the network continues to improve.

Good OL MC says:

I think this will be a positive change in wireless. These two carriers have a history of disruptive pricing and sometimes questionable service so hopefully they can compliment each other in the right ways.

Jayshmay says:

+1!!! I agree! This would be really good for the industry, good for T-Mobile, good for consumers! I hope it will happen, and I hope T-Mobile will incorporate Metro's spectrum swiftly!

return_0 says:

So MetroPCS will be buying T-Mobile… but what will the new company be called? MetroPCS or T-Mobile? Or is that yet to be determined?

Mexi707 says:

I think they said they're going to keep the T-Mobile name

TPCS :-)

They've already confirmed the combined company will continue to be called T-Mobile so effectively MetroPCS name will eventually go away a couple years after the merger.

return_0 says:

Interesting considering MetroPCS is the buying company. But I like that decision because tbh the name "MetroPCS" sounds weird and not as good. And it also has that stigma of being a cheap company with bad service that T-Mobile doesn't really have.

It will be Tmobile and will always be tmobile.

The new company will be called T-Mobile, mostly because there are more T-Mobile stores nationwide and the brand awareness is drastically higher than MetroPCS.

The deal is only a reverse-merger from a technical perspective, because this way the new T-Mobile will be a publicly traded company, rather than private as it is now. DT is still the majority shareholder, but the structure is changed.

jedah says:

I really hope this goes through. Aren't they planning to use MetroPCS' spectrum for LTE?

return_0 says:

I think so, in addition to T-Mobile's upcoming LTE spots.

Mexi707 says:

I hope it goes through. Im on metro pcs and having t-mobiles variety of phones would greatly be appreciated :D

return_0 says:

Sorry but I have another question. I understand that Sprint, T-Mobile, and MetroPCS are the 3rd, 4th, and 5th largest US carriers, respectively. Will T-Mobile and MetroPCS combined be larger than Sprint or still smaller?

atlas9171 says:

Pretty sure they will still be behind Sprint in subscriber numbers by a few million.

Kyle Freeman says:

T-Mobile wants to go all contract free with very competitive pricing. MetroPCS is contract free with non-competitive pricing that negates the advantage of going contract free. This may not be that great for T-mobile customers. $30/mo for unlimited 4G HSPA+ data with a 100 phone minutes as a bonus is great, but will probably not last through this merger. Also, MetroPCS kept T-Mobile competitive. Less choice is bad for the consumer. The only people this benefits are the millionaire board members and Deutsche Telekom. T-Mobile USA didn't want the AT&T merger and they don't want this one. They just need to split off from DT and become their own entity.

marcus.plans says:

They'll still need competitive pricing going against Verizon, AT&T, and Sprint. And how do you figure that MetroPCS does NOT have competitive pricing? Their most expensive plan is $60 and that's included everything which, I'm pretty sure, is cheaper than what T-Mobile offers. However, I'm not sure if they throttle data or not. My first Android phone was on MetroPCS before they even had 3G, then I switched to Virgin Mobile (which, admittedly, at the time at least, had unbeatable pricing), and now I'm on T-Mobile. MetroPCS has pricing you'd expect for pre-paid and their pre-paid plan pricing seems better than what T-Mobile currently offers.

Personally, I'm looking forward to this because it means to me, as a T-Mobile subscriber who intends to stay a T-Mobile subscribers since they're the cheapest non-pre-paid carrier, that my network is going to improve.