T-Mobile CEO John Legere and Sprint CEO Marcelo Claure come together to announce some “very big news” via the video below:
Sprint and T-Mobile, have agreed to merge into one massive telecom provider. This however is not official just yet, as the merger will need to be approved by regulators and shareholders at both companies.
The T-Mobile name will survive as the new entity’s title, and will continued to be based in the provider’s longstanding home of Bellevue, Washington. T-Mobile’s CEO, Legere, will run the combined company, with T-Mobile COO Mike Sievert becoming the new company’s COO and President. T-Mobile’s majority owner, Deutsche Telekom, will reportedly hold a 42-percent stake in the company, while Sprint’s majority owner, SoftBank, will hold a 27-percent piece, with public stakeholders holding the rest. Sprint CEO Marcelo Claure and SoftBank CEO Masayoshi Son will sit on the combined company’s board.
The $26 billion USD merger is a response to the market’s surging demand for a fast and reliable 5G network, with larger rivals AT&T and Verizon already setting their sights on the next-gen service. The pairing will also lower prices, deliver better service and take advantage of “greater economies of scale.”