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T-Mobile and MetroPCS Reverse Merger Approved, Takes Place May 1


This morning, the reverse merger (little company buys big company) between T-Mobile and MetroPCS was made official. In a final vote made by shareholders, the effects of this deal are set to take place on May 1, resulting in a cash payout to MetroPCS shareholders of $1.5 billion. This deal, heavily sought after by T-Mobile, is just another check on their long list of vast improvements they have made in 2013. 

Their network is starting to become more powerful, they now carry the two most popular smartphones of the year and have also introduced brand new no-contract plans, which could mean more success is headed their way. René Obermann, CEO of Deutsche Telekom Group, had this to say on the news:

We have accomplished a lot in the USA recently, for example our network modernization and the new T-Mobile USA management team, which has seen considerable success. And we have finalized the contracts with Apple and MetroPCS. The merger with MetroPCS is extremely important, since it enables us to be more aggressive in the USA.

We are still awaiting details for what subscribers on both carriers can expect to see, but it will most likely be made quite apparent once May 1 rolls around.

Via: Telekom

  • Elliot Gardner

    How is this going to help T-mobile? T-Mobile uses GSM, Metro PCS uses CDMA…

    • seryozha

      spectrum? i think.

  • Dwight Porter

    So on May 1st will we start seeing coverage improvement if not when.

    • JRomeo

      I predict right around the 1 year mark after the merger deal closes.

  • T Mobile’s network will catch up very fast and also have the newer LTE service installed as where as ATT and VZ will have to take down and replace their towers to get up to speed. I also love the other cell service Solavei.com/cell4you2 where they pay you back residual income for sharing their service.. sounds like a Win-Win-Win for everyone even the customer

    • dmagicp

      No they won’t. All cellular upgrades are done through software. Where do people get this crap?

      • areffes

        All cellular upgrades are not done through software, lol. Not by a long shot. My best friend installs the equipment on cell towers that allows them to pick up lte signals in addition to 3G. It’s very much a hardware change when you upgrade cellular service. I’m sure he *wishes* it could be done through software, so he wouldn’t have to spend 8 hours a day up on those things 120 feet in the air. But no.

  • Emilio Figueroa

    If they can improve their coverage to acceptable levels, then I’m all for switching over

  • judie

    Hey Droid Lifers!!! Come join us at Solvei!! $49 or FREE unlimited text data and talk 4G. We
    are partnered with T-mobile and are very excited about the merger!!
    MEANS MORE FOR OUR MEMBERS!! See more info here http://www.judie.sharesolavei.com I look forward to answering any questions you may have! Judie Main-Trammel

  • I’m confused about the “reverse merger”. Isn’t T-mobile, who is the company buying MetroPCS, a much bigger company and even more so when you consider it’s parent company of Deutsche Telekom? What’d I miss?

    • Tim242

      Deutsche is spinning off their US operations. While US Cellular is the acquirer, they will keep the T-Mobile name. It is confusing, but makes sense for the two companies. It sounds about as crazy as when Cingular bought at&t, then a year later changed their name to at&t.

      • Pedro

        Might have to do with debt the companies are carrying.
        In a merger, existing debt can come due in certain cases. At least, that’s how airline mergers work.

      • snowblind64

        I can’t find any reference to US Cellular buying T-Mobile. Could you site your source please.

        • Tim242

          I meant Metro PCS. Not sure why I put US Cellular. I fixed it. Thanks : )

          • snowblind64

            I don’t see where it says that MetroPCS is acquiring T-Mobile or that Deutsche Telekom is selling it’s interests in T-Mobile. I could be wrong but it looks like T-Mobile is buying MetroPCS.

            From the source article:
            “With today’s approval by MetroPCS’ stockholders, all the requisite approvals required to complete the proposed combination have been received and the transaction is expected to close by May 1, 2013. In line with the closing, the consolidation of the new company into the Deutsche Telekom Group will be effective as of May 1, 2013.”


          • Tim242

            It’s a reverse merger. Metro PCS is acquiring T-Mobile USA, and keeping the T-Mobile name.

          • snowblind64

            It is a complex merger arrangement to say the least.

            From what I read it appears that T-Mobile is selling all of it’s stock to MetroPCS in exchange for a 74% stake in the company. T-Mobile will gain important AWS spectrum for it’s LTE rollout. DT retains ownership and the company will trade as TMUS on the NYSE.

            “Under the terms of the transaction, MetroPCS will engage in a reverse-merger with T-Mobile and DT will own 74 percent the combined company, which will be public. MetroPCS will also declare a 1-for-2 reverse stock split and pay $1.5 billion in cash to its shareholders. MetroPCS shareholders will retain 26 percent of the company.”

          • right and I believe since Metro is a Public company Deutsche Telekom will be able to sell off pieces as they wish

  • Daniel Cabrera
  • J. Gilbertson

    Sad thing is this will only embrace parts of the current network infrastructure. T-mobile was pretty much already in every location MetroPCS was. There might be some tiny holes filled in on the map but it’s pretty much a bunch of overlap.

  • anezarati

    i’d love to take my N4 off straight talk (at&t) and move to t-mobile if they could ever improve their network

    • Droidzilla

      Hear, hear. Though that’s the beauty of the new Nexus program; stay with who works for you, switch whenever you like.

  • Sqube

    Can’t wait to see the new, improved coverage map. I’m still looking for a reason to get rid of VZW and T-Mobile is pushing the right buttons.

    • Jeremy Gill

      Unforunately, I think Metro’s coverage is just that, metro. They have limited coverage in between cities just like T-Mobile.

      • Timbo1

        Ya unless you live in Florida which is Metro’s biggest market, almost the entire state is covered including LTE

        • sirmeili

          I did not know this. This makes me very very happy as a person about to jump ship from verizon.

          • Let’s connect thru Facebook! I can help make that jump profitable! 😉

          • judie

            Come join us at Solvei!! $49 or FREE unlimited text data and talk 4G. We are partnered with T-mobile and are very excited about the merger!! MEANS MORE FOR OUR MEMBERS!! See more info here http://www.judie.sharesolavei.com I look forward to answering any questions you may have! Judie Main-Trammel

        • Allen Byrd

          This is amazing. I live in FL and now I’m definitely switching to T-Mo.

          • Timbo1

            Keep in mind I was referring to Metro PCS coverage in Florida and as of right now they are still separate entities. Case in point in my current location on my street is a dead zone for Tmo but when I had Metro I had full signal and LTE but if I go outside my signal increases with Tmo apparently my local tower has not been modernized yet and I am just outside of the extended Orlando metropolitan area. When I get closer to town though my download speeds average 22-25 mb.

    • Let’s connect Facebook; maybe I can help. Bill Reiner

    • chris125

      Same here, hoping at the least maybe they can bring their edge network up to 3g and that alone would be a huge improvement for their current coverage map

    • cizzlen

      Do it. I got mine in the mail yesterday. There are no words… I also live in a metro area so it was easy to switch. I get strong and FAST signal all over the city!

  • New_Guy

    Good job, T-Metro!

    • sounds like a gay nightclub name

      • For Tranny’s and Metros… Nice. We have a Club like that in Charlotte, NC. “The Scorpio”

  • Austin Warren

    Can’t wait to see more coverage now

  • Derek Edwards

    I love T-mobile as a company. I hate their network. It just really sucks outside of the city. I can get voice coverage almost anywhere, but for the price we pay for data, we should get to use it on the road between cities at least.

    This is why I like AT&T’s network so much, thus why I have gone MVNO and just watch my data usage.

    • This is almost exactly how I feel. When I’m home (NY Metro area) T-mobile would be an amazing deal. The problem is that occasionally I leave the area….for example my family is in upstate NY. T-Mo is horrible up there.

      This problem is the only reason I still have VZW. Fortunately with the new purchasing method, I may just buy a phone like that and keep my Unlimited data. I just hate paying so much more a month.

      • I found that out the hard way when I lived in NY and had T mobile it was great and then I moved upstate and couldn’t even make calls.

      • Derek Edwards

        I have learned to live with limited data and cheaper plans. I pay $85 for two Net10 lines that come with unlimited talk/text/data and the data has a supposed 2GB cap on it. I guess if you go over 2GB regularly, they will drop you.

        I’m near wifi enough that it’s not a problem. I just stopped downloading ROM updates over the air and it reduced my data by a couple GB lol.