T-Mobile has announced that it is buying Sprint in a deal which is worth $26 billion. The deal will be done in an all stock transaction. The two companies will be combined into one company which will be able top take on the big mobile carriers like AT&T and Verizon.
This will leave just three major mobile carriers in the US and the deal will need approval by the regulators before it goes ahead.
T-Mobile US (NASDAQ: TMUS) and Sprint Corporation (NYSE: S) today announced they have entered into a definitive agreement to merge in an all-stock transaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share or the equivalent of 9.75 Sprint shares for each T-Mobile US share. Based on closing share prices on April 27, this represents a total implied enterprise value of approximately $59 billion for Sprint and approximately $146 billion for the combined company. The new company will have a strong closing balance sheet and a fully funded business plan with a strong foundation of secured investment grade debt at close.
You can find out more details about the new deal between T-Mobile and Sprint over at the T-Mobile website at the link below.