T-Mobile and Sprint finalize new terms for megamerger
Sprint and T-Mobile said Thursday they've reached an agreement on new terms for their megamerger. This should pave the way for the companies to complete the $26.5 billion deal, following a ruling last week by a federal court that rejected claims that the merger would be bad for consumers.
As part of the new terms, T-Mobile's parent company, Deutsche Telekom, will get a larger stake in the new company. The German telecom giant will own 43% of the new company. Meanwhile, Softbank, which is the majority owner of Sprint, will own 24% of the new company, with the remaining 33% being held by public shareholders.
T-Mobile announced its plans to merge with Sprint in 2018. The deal was approved by the Federal Communications Commission and the Department of Justice. As part of the DOJ's approval, the companies agreed to sell assets to satellite TV provider Dish Network, which is expected to build its own wireless network to become the nation's fourth-largest nationwide provide.
Since the deal was first announced, Sprint's stock has tanked and the company has continued to lose customers. News reports suggested that Deutsche Telekom was seeking to renegotiate.