Shares of\u00a0U.S. Cellular\u00a0popped nearly 6% Tuesday after\u00a0T-Mobile\u00a0announced\u00a0that it plans to acquire most of the company, including the wireless operator\u2019s stores, some of its spectrum assets and its customers in a deal worth $4.4 billion.<\/p>\n
The deal includes cash and up to $2 billion of debt, according to a press release from T-Mobile. Up to $100 million of the deal\u2019s cash portion depends on certain financial and operating metrics being met between its signing and closing, according to a separate\u00a0press release\u00a0from U.S. Cellular.<\/p>\n
Shares of T-Mobile were up more than 1% during Tuesday\u2019s session.<\/p>\n
T-Mobile\u00a0will acquire about 30%\u00a0of U.S. Cellular\u2019s wireless spectrum as part of the deal, according to the U.S. Cellular release. It plans to use that to improve coverage in rural areas while offering better connectivity to U.S. Cellular customers around the United States, the two companies announced. The company said it will allow U.S. Cellular customers to keep their current plans or switch to a T-Mobile plan.<\/p>\n
Both companies said that U.S. Cellular will retain 70% of its wireless spectrum and towers and will lease space on at least 2,100 additional towers to T-Mobile. The deal will also allow T-Mobile to sign new long-term leases on at least 2,015 U.S. Cellular-owned towers and extend existing leases on about 600 others, U.S. Cellular said in its release.<\/p>\n
This will give U.S. Cellular customers a \u201cstrong anchor tenant\u201d for at least 15 years after the deal\u2019s close, the company said.<\/p>\n
The news follows T-Mobile\u2019s $1.35 billion acquisition of Ka\u2019ena, the parent company of Mint Mobile. The U.S. Federal Communications Commission\u00a0approved that deal\u00a0in April.\u00a0T-Mobile merged with Sprint\u00a0in 2020 in a deal worth $26 billion.<\/p>\n
The Wall Street Journal\u00a0reported earlier in May that T-Mobile and\u00a0Verizon\u00a0were in talks to \u201ccarve up\u201d U.S. Cellular\u2019s wireless spectrum but said a deal with Verizon on a separate transaction could take longer or fall through.<\/p>\n
The companies expect the deal to close in mid-2025.<\/p>\n<\/p>\n
Shares of\u00a0U.S. Cellular\u00a0popped nearly 6% Tuesday after\u00a0T-Mobile\u00a0announced\u00a0that it plans to acquire most of the company,…<\/p>\n","protected":false},"author":0,"featured_media":657,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-656","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts\/656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/comments?post=656"}],"version-history":[{"count":0,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts\/656\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/media\/657"}],"wp:attachment":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/media?parent=656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/categories?post=656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/tags?post=656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}