T-Mobile and MetroPCS have approved the combination of the two entities in what’s known as a reverse merger. According to sources familiar with the companies and their plans, MetroPCS will acquire T-Mobile USA but will be still be called T-Mobile and run by its current CEO, John Legere.
Breaking: Deutsche Telekom, MetroPCS boards approve T-Mobile deal. wsj.com
— Wall Street Journal (@WSJ) October 3, 2012
Once finalized, Deutsche Telekom will hold 74 percent of shares and MetroPCS will have the remaining 26 percent, receiving $1.5 billion along the way. A formal announcement for the merge has not been made yet but we anticipate something shortly. If/when the government gives the nod, the combined company will service around 42.5 million subscribers, still behind Verizon, AT&T, and Sprint.