On Sunday, April 29, T-Mobile and Sprint made a major announcement that will affect that future of each of their companies and their customers. After years of discussion, T-mobile, the third largest telecom company, and Sprint, the fourth largest, have finally agreed that they will merge their companies.
The two companies had been in several discussions throughout the last few years about a merger, but each time it was cut off by a “breakup.” Now, they have finally come to an agreement on what a merger could look like.
On Sunday, T-Mobile CEO John Legere said that they plan to deliver “the highest capacity network in US history.” Legere will be the CEO of the "new" T-Mobile as well.
According to CNN, the companies also plan on hiring thousands of people in order to support the nationwide 5G network. They said that the merger would make them fiercer competition against the giants of the industry, Verizon and AT&T.
Legere said, “I’m excited to announce that @TMobile and @Sprint have reached an agreement to come together to form a new company- a larger, stronger competitor that will be a force for positive change for all US consumers and businesses!”
Below is their press release video:
According to recent reports, Sprint was valued at $26 billion while T-Mobile was valued at $55 billion. The combined company will reportedly take on the name T-Mobile and will have an estimated enterprise value of $146 billion.
In the press release on Sunday, Legere and the Sprint CEO Marcelo Claure explained their future hopes for the combined company. They said that they hope to lower costs for customers while also creating more jobs.
However, many consumers believe that because the merger will make the new T-Mobile a stronger competitor against Verizon and AT&T, that prices and competition will inevitably increase.
Are you with either T-Mobile or Sprint? Will this affect you? Let us know your thoughts! In other recent news, a famous actress just got engaged, take a look at her stunning 4-carat diamond ring!