=Sprint (S) and T-Mobile (TMUS) agree to $26 billion merger

• A report commissioned by CTIA, a trade association for the wireless communications industry, states that South Korea and China maintain a lead over the United States when it comes to readiness for rolling out 5G. The T-Mobile and Sprint merger may or may not expedite the US’s position.

Sprint (S) & T-Mobile (TMUS) reach agreement to merge in all-stock transaction 

The co's 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.

• 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.
• 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.
• The Boards of Directors of T-Mobile and Sprint have approved the transaction. Deutsche Telekom (DTEGY) and SoftBank Group (SFTBY) 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.

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