OAN’s James Meyers
8:11 AM – Tuesday, May 28, 2024
T-Mobile announced on Tuesday that it’s buying most of U.S. Cellular’s operations in a deal worth $4.4 billion, which includes some of the wireless operator’s spectrum and its customers.
The deal will include a combination of cash and up to $2 billion of debt.
Shares of U.S. Cellular increased over 7% in premarket trading, with T-Mobile shares staying flat.
T-Mobile will acquire close to 30% of U.S. Cellular’s wireless spectrum as part of the deal, expanding coverage for customers in rural areas, while U.S. Cellular will keep the remaining 70% to “opportunistically monetize these retained assets,” according to the statement.
U.S. Cellular customers can keep their current wireless plans or switch to a plan offered by T-Mobile, the companies said.
Additionally, U.S. Cellular will lease almost 2,100 cellphone towers to T-Mobile.
According to T-Mobile, integrating U.S. Cellular’s operations into T-Mobile’s business will cost between $2.2 billion and $2.6 billion.
Meanwhile, the deal is expected to close in mid-2025 pending regulatory approval, both companies said, and has already been approved by U.S. Cellular’s board of directors.
Furthermore, if the deal does not go through, T-Mobile has stated it will pay U.S. Cellular $60 million.
T-Mobile merged with Sprint in 2020 in a deal worth $26 billion.
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