Deutsche Telekom and MetroPCS Announce Merger
This Move Still Makes No Sense
This looks more like a desperation move rather than an asset move. It is possibly to overthrow a Sprint offer. Which means DT paid an inflated price to acquire. They may gain spectrum and a few customers. But then what? They have been losing subscribers left and right. Many of the 9 million that they will acquire from MetroPCS will need to be offered some pretty sweet deals to make the stay attractive. In spite of how simple this all seems, It may be quick but, I believe this is going to be a nightmare merge shortly after and really serve Tmobile little benefit to gain traction. DT has had very little involvement to help their subsidary.
I'm at a loss.
John B.
I'm at a loss.
John B.
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DT has been looking for a way out of the US for years this will work as a reverse merger allowing DT to sell off its stake in the company little by little to this ''new'' t-mobile. That's what cares about.
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Not sure why everybody is looking at this as DT looking for a better hold... They want out, period. This is a viable way of doing that without closing the door on the U.S. market should they develop a renewed interest further down the line. Seeing as them selling off their stock is a part of the merger agreement, I see issues further down the line should Metro manage unforseen success with the LTE services, and DT no longer wants to sell. At the same time, that's beyond a long shot. Metro is struggling to deploy LTE over their footprint as it is, and while $2 billion will help that to happen faster in their existing footprint, even the $4 billion ATT just gave TMO wasn't enough to deploy it over TMO's network. So then you have a region...
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