Login

Deutsche Telekom reportedly looking to merge T-Mobile USA with MetroPCS

Deutsche Telekom headquarters

Bloomberg is reporting that Deutsche Telekom is in talks to merge T-Mobile USA with MetroPCS, a little more than four months after failing to sell the unit to AT&T. Sources close to the matter tell Bloomberg that the European carrier is contemplating a stock-swap transaction that would give it full control over the newly formed entity, and that this entity would be publicly listed. Deutsche Telekom has other options to explore, however, including an outright sale of T-Mobile USA. Sources say the provider is in talks with other companies, as well, with some analysts citing Sprint as a viable alternative.

Wednesday's report comes barely a week after MetroPCS reported an 82-percent year-on-year drop in new customers, and a few months after T-Mobile reported a similar plunge in its subscriber base. In today's Q1 earnings report, T-Mobile announced overall customer gains, but substantial losses in contract subscribers.

Earlier this year, it looked as if Sprint was on the verge of acquiring MetroPCS for $8 billion, but the deal ultimately fell through at the last minute. Over the past year, MetroPCS' stock has fallen by 24-percent, which, according to Bloomberg's insiders, may complicate its current negotiations with Deutsche Telekom. The potential merger would make sense on a technical level, since MetroPCS owns substantial AWS spectrum, though the prepaid carrier is reportedly in talks with other companies, as well.

The Verge
X
Log In Sign Up

forgot?
Log In Sign Up

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.
Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.