Sprint and T-Mobile vowed $6 billion or more of “run rate cost synergies” as a result of the deal.
The promises in the press release are all about 5G wireless: the term is mentioned 37 times, with statement such as "create a nationwide 5G network with the breadth and depth needed to enable U.S. firms and entrepreneurs to continue to lead the world in the coming 5G."
T-Mobile’s corporate parent, Deutsche Telekom (DT), will hold 42% of the combined company, while SoftBank Group (9984JP), the parent of Sprint, will own 27%, the remaining 31% being held by the public. DT is to have 9 seats on the board of directors, and SoftBank, 4.
T-Mobile’s CEO, John Legere, will be the CEO of the combined company, and T-Mobile's COO, Mike Sievert, will retain that role, as will current T-Mobile chairman, Tim Höttges. SoftBank chairman Masayoshi Son and Sprint CEO Marcelo Claure will serve on the board.
In addition to the cost savings, the two companies said they plan to invest $40 billion in building out their combined network “in the first three years… a massive capital outlay that will fuel job growth." |
