Following the last major regulatory hurdle being cleared earlier this month, Sprint and T-Mobile have announced today that they’ve finalized the new terms for their merger. The two carrier say the deal could close as early as April 1, creating the “New T-Mobile.”
As detailed by CNET, the new terms of the deal give Deutsche Telekom a larger stake in New T-Mobile. This change was made to improve the exchange ratio in the all-stock deal.
As part of the new terms of the deal, T-Mobile’s parent company Deutsche Telekom will get a larger stake in the new company. The German telecom giant will own 43% of the new company. Meanwhile, Softbank, which is majority owner of Sprint, will own 24% of the new company with the remaining 33% being held by public shareholders.
The Wall Street Journal first reported the new terms of the deal prior to the official announcement from T-Mobile and Sprint.
In a statement this afternoon, current CEO of T-Mobile John Legere said the today’s announcement is “another significant step forward toward closing this transaction.” According to Legere, the goal remains to develop a nationwide 5G network:
“Throughout this journey, T-Mobile and Sprint have been singularly focused on one thing: building a supercharged Un-carrier that will offer U.S. consumers a broad and deep nationwide 5G network, more choice and greater competition. We are now on the threshold of achieving our goal,” Legere said.
Current T-Mobile COO Mike Sievert is slated to become CEO of New T-Mobile once the deal closes. Legere will step down from his role of CEO, though he’s expected to remain on the board of directors.
Earlier this month, the T-Mobile and Sprint merger received approval from the judge presiding over a lawsuit from attorneys general from 13 states and the District of Columbia. The lawsuit aimed to block the deal over concerns about higher prices and reduced competition.
You can read today’s full announcement here.