Sprint President Michel Combes, from left, T-Mobile CEO John Legere, Sprint CEO Marcelo Claure, and T-Mobile President and COO Mike Sievert enjoy a laugh as they announce the two companies will come together, creating thousands of American jobs, boosting economic growth and supercharging 5G on Sunday, April 29, 2018 in New York. Photo courtesy of T-Mobile / Charles Sykes / AP Images for T-Mobile and Sprint

Bellevue, Washington and Overland Park, Kansas, USA – April 29, 2018

• Creates Only Company with Network Capacity Needed to Rapidly Launch Nationwide 5G Network with Breadth and Depth Critical to Extend U.S. Global Internet Leadership in the 5G Era

• Supercharges the Un-carrier Strategy to Deliver Lower Prices, Unmatched Value, and Greater Competition in Wireless, Video, and Broadband

• Combination Will Create Thousands of American Jobs and Boost U.S. Economic Growth with Planned $40 Billion Investment in its Business and Next-Generation 5G Network

• John Legere to Serve as Chief Executive Officer and
Mike Sievert to Serve as President and Chief Operating Officer of the Combined Company

T-Mobile US (NASDAQ: TMUS) and Sprint Corporation (NYSE: S) today announced they have entered into a definitive agreement to merge in an all-stock transaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share or the equivalent of 9.75 Sprint shares for each T-Mobile US share.

T-Mobile and Sprint leaders share details on Sunday, April 29, 2018 in New York during a call announcing the two companies will combine, supercharging T-Mobile’s Un-carrier strategy to disrupt the industry and lay the foundation for U.S. companies and innovators to lead in the 5G era. Photo courtesy of T-Mobile / Charles Sykes / AP Images for T-Mobile and Sprint

Based on closing share prices on April 27, this represents a total implied enterprise value of approximately $59 billion for Sprint and approximately $146 billion for the combined company.

The new company will have a strong closing balance sheet and a fully funded business plan with a strong foundation of secured investment grade debt at close.

T-Mobile CFO Braxton Carter, left, is all smiles with Sprint CFO and President Michel Combes, T-Mobile CEO John Legere and Sprint CEO Marcelo Claure as they share details Sunday April 29, 2018, in New York during a call announcing the companies will combine to create America’s highest capacity mobile network. Photo courtesy of T-Mobile / Charles Sykes / AP Images for T-Mobile and Sprint

Video
A combined T-Mobile & Sprint to accelerate 5G innovation

https://www.youtube.com/watch?v=1nsbmtwMrgY&feature=youtu.be  

T-Mobile CEO John Legere, left, and Sprint CEO Marcelo Claure take questions from Twitter on Sunday April 29, 2018, in New York during a call announcing that the companies will combine creating a fierce competitor in wireless, video, and broadband able to deliver lower prices and greater competition. Photo courtesy of T-Mobile / Charles Sykes / AP Images for T-Mobile and Sprint

The combined company will be named T-Mobile, and it will be a force for positive change in the U.S. wireless, video, and broadband industries.

The combination of spectrum holdings, resulting network scale, and expected run rate cost synergies of $6+ billion, representing a net present value (NPV) of $43+ billion will supercharge T-Mobile’s Un-carrier strategy to disrupt the marketplace and lay the foundation for U.S. companies and innovators to lead in the 5G era.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure Join Forces to Accelerate a Nationwide 5G Network for All. Photo courtesy of T-Mobile

The New T-Mobile will have the network capacity to rapidly 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 era, as U.S. companies did in 4G.

The new company will be able to light up a broad and deep 5G network faster than either company could separately.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure Combine to Create the New T-Mobile, Increasing Competition. Photo courtesy of T-Mobile

T-Mobile deployed nationwide LTE twice as fast as Verizon and three times faster than AT&T, and the combined company is positioned to do the same in 5G with deep spectrum assets and network capacity.

The combined company will have lower costs, greater economies of scale, and the resources to provide U.S. consumers and businesses with lower prices, better quality, unmatched value, and greater competition.

The New T-Mobile will employ more people than both companies separately and create thousands of new American jobs.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure Expect Combined Company to Spur Job Growth and Boost Economy. Photo courtesy of T-Mobile

Following closing, the new company will be headquartered in Bellevue, Wash., with a second headquarters in Overland Park, Kan.

John Legere, current President and Chief Executive Officer of T-Mobile US and the creator of T-Mobile’s successful Un-carrier strategy, will serve as Chief Executive Officer, and Mike Sievert, current Chief Operating Officer of T-Mobile, will serve as President and Chief Operating Officer of the combined company.

T-Mobile CEO John Legere and Sprint CEO Marcelo Claure Combine to create the New T-Mobile, Supercharging the Un-carrier Strategy. Photo courtesy of T-Mobile

The remaining members of the new management team will be selected from both companies during the closing period.

Tim Höttges, current T-Mobile US Chairman of the Board, will serve as Chairman of the Board for the new company.

Masayoshi Son, current SoftBank Group Chairman and CEO, and Marcelo Claure, current Chief Executive Officer of Sprint, will serve on the board of the new company.

Photo courtesy of T-Mobile

“This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own,” said John Legere.
“As industry lines blur and we enter the 5G era, consumers and businesses need a company with the disruptive culture and capabilities to force positive change on their behalf.”

Photo courtesy of T-Mobile

“The combination of these two dynamic companies can only benefit the U.S. consumer. Both Sprint and T-Mobile have similar DNA and have eliminated confusing rate plans, converging into one rate plan: Unlimited,” said Marcelo Claure.
“We intend to bring this same competitive disruption as we look to build the world’s best 5G network that will make the U.S. a hotbed for innovation and will redefine the way consumers live and work across the U.S., including in rural America. As we do this, we will force our competitors to follow suit, as they always do, which will benefit the entire country. I am confident this combination will spur job creation and ensure opportunities for Sprint employees as part of a larger, stronger combined organization, and I am thrilled that Kansas City will be a second headquarters for the merged company.”

Photo courtesy of T-Mobile

Creating #5GforAll – the Only Broad and Deep 5G Nationwide Network

It is critically important that America and American companies lead in the 5G era.

Early U.S. leadership in 4G fueled a wave of American innovation and entrepreneurship that gave rise to today’s global mobile Internet leaders, creating billions in economic value and job growth.

America’s early 4G leadership is credited with creating 1.5 million jobs and adding billions to the U.S. GDP. With 5G, the stakes are even higher – because 5G will be even more transformational.

Photo courtesy of T-Mobile

Only the combined company will have the network capacity required to quickly create a broad and deep 5G nationwide network in the critical first years of the 5G innovation cycle – the years that will determine if American firms lead or follow in the 5G digital economy.

With Sprint’s expansive 2.5 GHz spectrum, T-Mobile’s nationwide 600 MHz spectrum, and other combined assets, the New T-Mobile plans to create the highest capacity mobile network in U.S. history.

Photo courtesy of T-Mobile

Compared to T-Mobile’s network today, the combined company’s network is expected to deliver 15x faster speeds on average nationwide by 2024, with many customers experiencing up to 100x faster speeds than early 4G.

Neither company standing alone can create a nationwide 5G network with the breadth and depth required to fuel the next wave of mobile Internet innovation in the U.S. and answer competitive challenges from abroad.

Photo courtesy of T-Mobile

Neither can AT&T and Verizon in the near term, even though they will still respectively own 34% and 172% more spectrum than the combined company.

Even with their vast resources, AT&T and Verizon cannot rapidly build nationwide 5G and their planned 5G networks will only be available sporadically in just a handful of very limited areas.

Photo courtesy of T-Mobile

To build nationwide 5G, they either have to kick current customers off LTE, which would take years, or use a type of spectrum (millimeter wave) that can only carry a signal 2,000 feet from a cell site – versus multiple miles for other spectrum – making it nearly impossible for either of them to create a truly nationwide 5G network quickly.

Ubiquitous high-speed 5G service and Internet of Things (“IoT”) capabilities will ignite innovation across industries and create the conditions for U.S. firms and innovators to lead the globe in the 5G era.

Photo courtesy of T-Mobile

“Going from 4G to 5G is like going from black and white to color TV,” added Claure.
“It’s a seismic shift – one that only the combined company can unlock nationwide to fuel the next wave of mobile innovation.”

Photo courtesy of T-Mobile

5G for All will unleash incredible benefits and capabilities for consumers and businesses.

Imagine, for example, augmented reality heads-up displays that see everything you do, and provide real-time cloud-driven information about the people and objects around you.

Imagine never losing anything again because low-cost sensors with decade long battery life are embedded in everything you own. Imagine an earpiece providing real-time translation as a friend speaks to you in another language.

Imagine environmental sensors in infrastructure and for agriculture having a profound impact on productivity.

Photo courtesy of T-Mobile

Shifting the Un-carrier Strategy Into Overdrive – Reducing Prices and Driving More Competition

The new company expects prices to drop as competition heats up.

The New T-Mobile will have lower costs, greater economies of scale, and unprecedented network capacity – a winning combination that should make wireless, and adjacent industries like cable and broadband, more affordable for everyone.

Photo courtesy of T-Mobile

The combination will dramatically accelerate T-Mobile’s successful Un-carrier strategy, which is built around listening to customers and solving their pain points.

It will also leverage Sprint’s incredible spectrum assets and strong DNA.

The deal will create more competition and unmatched value for customers across the country.
And, existing T-Mobile and Sprint customers will benefit from increased speeds, coverage, and performance as the two companies’ networks combine.

Photo courtesy of T-Mobile

Wireless, broadband, and video markets are rapidly converging.

AT&T is now the largest TV provider in the country.

Comcast added more wireless phone customers last year than AT&T and Verizon combined, and Charter is launching wireless this year.
And, more than 1 in 10 Americans (12%) use wireless as their only Internet or broadband connection, freeing themselves from the grip of the traditional, uncompetitive in-home broadband providers.

Photo courtesy of T-Mobile

“This isn’t a case of going from 4 to 3 wireless companies – there are now at least 7 or 8 big competitors in this converging market. And in 5G, we’ll go from 0 to 1. Only the New T-Mobile will have the capacity to deliver real, nationwide 5G,” added Legere.
“We’re confident that, once regulators see the compelling benefits, they’ll agree this is the right move at the right time for consumers and the country.”

Photo courtesy of T-Mobile

In this rapidly converging marketplace, the new company will bring more choice and competition – for all consumers, including three key underserved areas:

• Rural communities.
Rural Americans seldom have a choice of more than one or two wireless, broadband, or cable providers. The New T-Mobile will end that with increased reach and plans to open hundreds of new stores in rural communities, creating thousands of new jobs. Millions of Americans in rural communities will have more choice and competition, where they may have none today.

• Broadband.
51% of Americans have only one high-speed broadband option – no choice at all! The combined company will create a viable alternative for millions by enabling mobile connections that rival broadband, driving prices lower and improving service.

• Business and government wireless services.
Today, Verizon and AT&T dominate this category with 4x more customers than Sprint and T-Mobile added together. With its assets and capabilities, the new company will unlock real competition for business and government customers.

Photo courtesy of T-Mobile

Driving Significant U.S. Job Growth

From the first day Sprint and T-Mobile combine and every year thereafter, the new company will employ more people in the U.S. than both companies would separately.

More than 200,000 people will work on behalf of the combined company in the U.S. at the start.
And, the New T-Mobile plans to invest up to $40 billion in its new network and business in the first three years alone, a massive capital outlay that will fuel job growth at the new company and across related sectors.

This is 46% more than T-Mobile and Sprint spent combined in the past three years.

Photo courtesy of T-Mobile

This combination will also force AT&T, Charter, Comcast, Verizon, and others to make investments of their own to compete, driving billions more in accelerated investment.

Five years ago, T-Mobile merged with MetroPCS to compete in the 4G era – a transaction that has resulted in substantial job growth.

Three times the number of people work on MetroPCS today compared to the time of the acquisition in 2013.

Photo courtesy of T-Mobile

With that track record, the New T-Mobile will accelerate long-term economic stimulus for the U.S. in the 5G era - ultimately leading to the creation of thousands of American jobs and supporting business opportunities for the U.S. economy.

5G is expected to create 3 million new U.S. jobs and $500 billion in economic growth by 2024, according to a report from CTIA, and the combined company will be a catalyst in driving that massive economic stimulus.

Photo courtesy of T-Mobile

Transaction Details and Financial Profile

The new company expects to create substantial value for T-Mobile and Sprint shareholders through an expected $6+ billion in run rate cost synergies, representing a net present value (NPV) of $43+ billion, net of expected costs to achieve such cost synergies.

This transaction will also enhance the financial position of the combined company.

Highlights include:

• Pro Forma 2018E Service Revenue ¹ of $53-57 billion

• Pro Forma 2018E Adjusted EBITDA ^1,2 of $22-23 billion

• Pro Forma 2018E Adjusted EBITDA ^1,2 Margin of 40-42% with a longer-term target of 54-57%

• Pro Forma 2018E Net Debt ³ of $63-65 billion with a streamlined single-silo corporate debt structure

• Fully funded business plan with significant liquidity at close

The Boards of Directors of T-Mobile and Sprint have approved the transaction.

Deutsche Telekom and SoftBank Group are expected to hold approximately 42% and 27% of diluted economic ownership of the combined company, respectively, with the remaining approximately 31% held by the public.

The Board will consist of 14 directors, 9 nominated by Deutsche Telekom and 4 nominated by SoftBank Group, including Masayoshi Son, Chairman and CEO of SoftBank Group, and Marcelo Claure, CEO of Sprint.

John Legere, CEO of the New T-Mobile, will also serve as a director.

Upon consummation of the transaction, the combined company is expected to trade under the (TMUS) symbol on the NASDAQ.

The new company will have some of the most iconic brands in wireless – T-Mobile, Sprint, MetroPCS, Boost Mobile, Virgin Mobile – and will determine brand strategy after the transaction closes.

The transaction is subject to customary closing conditions, including regulatory approvals.

The transaction is expected to close no later than the first half of 2019.

Photo courtesy of T-Mobile

Advisors

PJT Partners is acting as financial advisor to T-Mobile and rendered a fairness opinion to its Board of Directors.

Goldman Sachs is acting as financial advisor to Deutsche Telekom and T-Mobile and rendered a fairness opinion to the T-Mobile Board of Directors.

Deutsche Bank also acted as financial advisor to T-Mobile.

Wachtell, Lipton, Rosen & Katz is providing legal counsel to T-Mobile and Deutsche Telekom, with Cleary Gottlieb and DLA Piper serving as regulatory counsel.

Evercore is acting as financial advisor to a committee of independent directors of T-Mobile and rendered a fairness opinion, and Latham & Watkins is providing legal counsel to the committee of independent directors.

Richards, Layton and Finger is serving as Delaware Counsel. Morgan Stanley served as financial advisor to Deutsche Telekom.

Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley, and RBC are providing T-Mobile with committed debt financing to support the transaction, and PJT Partners is advising T-Mobile on the debt financing associated with the transaction.

The Raine Group LLC is acting as lead financial advisor to Sprint.

J.P. Morgan is also acting as a financial advisor to Sprint.

Centerview Partners LLC is acting as financial advisor to the Independent Transaction Committee of the Board of Directors of Sprint.

The Raine Group LLC, J.P. Morgan and Centerview Partners LLC each rendered fairness opinions to the Board of Directors of Sprint.

Morrison & Foerster LLP is lead legal counsel to Sprint and for SoftBank Group.

Goodwin Procter LLP is legal counsel to the Independent Transaction Committee of the Board of Directors of Sprint.

Skadden, Arps, Slate, Meagher & Flom LLP is regulatory co-counsel and Potter Anderson Corroon LLP is Delaware Counsel.

Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc. are acting as financial advisors to SoftBank Group.

Photo courtesy of T-Mobile

Conference Call / Webcast Information

T-Mobile and Sprint will host a conference call for investors and media at 12:30 PM Eastern Time today (9:30 AM Pacific Time) to discuss this announcement.

A live audio webcast of the call can be accessed at www.Allfor5G.com .

To submit questions via Twitter, send a tweet to @JohnLegere, @MarceloClaure, @TMobile, or @Sprint using #5GforAll.

Investors and media can access the teleconference by calling 888-599-8685 (U.S. Toll Free) or +1 323-794-2415 (International).
The access code for the call is 894223.

The conference call will be available for replay and can be accessed from www.Allfor5G.com  

or by dialing 888-203-1112 (U.S. Toll Free) or +1 719-457-0820 (International).
The access code for the replay is 8152135.

Photo courtesy of T-Mobile

About T-Mobile

As America's Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining the way consumers and businesses buy wireless services through leading product and service innovation.

Our advanced nationwide 4G LTE network delivers outstanding wireless experiences to 72.6 million customers who are unwilling to compromise on quality and value.

Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS.

For more information, please visit  http://www.t-mobile.com 


About Sprint

Sprint (NYSE: S) is a communications services company that creates more and better ways to connect its customers to the things they care about most.

Sprint served 54.6 million connections as of Dec. 31, 2017, and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; leading no-contract brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone.

Today, Sprint’s legacy of innovation and service continues with an increased investment to dramatically improve coverage, reliability and speed across its nationwide network and commitment to launching the first 5G mobile network in the U.S.

You can learn more and visit Sprint at  www.sprint.com

or www.facebook.com/sprint  

and www.twitter.com/sprint 

____________________

1)  Proforma service revenue and Adjusted EBITDA measures do not include the impacts of ASC606 revenue recognition accounting changes.

2) T-Mobile is not able to forecast net income on a forward looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP net income including, but not limited to, income tax expense, stock based compensation expense and interest expense. Adjusted EBITDA should not be used to predict net income as the difference between the two measures is variable.

3) Proforma net debt reflects total expected debt (excluding tower obligations, premiums, discounts and issuance costs) less cash and cash equivalents.
____________________


Contacts:

For T-Mobile:

Media Relations
MediaRelations@t-mobile.com  

Investor Relations
877-281-TMUS OR 212-358-3210
investor.relations@t-mobile.com  

For Sprint

Jud Henry
investor.relations@sprint.com  

David Tovar
david.tovar@sprint.com  


Video
A combined T-Mobile & Sprint to accelerate 5G innovation

https://www.youtube.com/watch?v=1nsbmtwMrgY  


Video
A combined T-Mobile & Sprint to accelerate 5G innovation

https://newsroom.t-mobile.com/video_display.cfm?video_id=15990  


Source: T-Mobile News Room

https://newsroom.t-mobile.com  



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