Hasta La Gadget!

The merger between T-Mobile USA and MetroPCS has been in the works for a few months now, getting approval from several government entities, but it looks like it’s a done deal, as MetroPCS shareholders have reportedly approved the merger with number 4 US wireless carrier T-Mobile, which will see an increase an customer base thanks to the acquisition.

Both Reuters and Bloomberg have reported that MetroPCS shareholders have come around and approved the merger with T-Mobile, although it’s unknown what the reasoning behind the change of heart was, considering that these same shareholders were mostly against the merger earlier on in the acquisition.

The merger was announced back in October last year, and it has gone through several stages of approval, with the US Department of Justice slapping the approval stamp on, and the FCC putting their gold sticker on the merger a few days later. Finally, it came down to the shareholders of MetroPCS, and with that approval, MetroPCS will officially be T-Mobile’s.

The merger will give T-Mobile the opportunity to spread its LTE network to more locations throughout the US. Currently, seven markets in the US are equipped with T-Mobile’s 4G LTE, but they expect to cover 100 million by mid-year, and 200 million by the end of 2013, which seems like a Herculean task, but the carrier seems confident in their efforts.

MetroPCS shareholders approve T-Mobile merger is written by Craig Lloyd & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

MetroPCS is once again encouraging its investors to vote in favor of its upcoming merger with T-Mobile, especially now that Deutsche Telekom has improved its offer terms. The improved terms reduces the amount of debt the merged companies would have to pay back by $3.8 billion. It also reduces the debt’s interest rate by 0.5%. DK also promised that it won’t be selling shares of the combined company for at least 1 year.

While several of the concerns that MetroPCS shareholders had were addressed, a couple are still unchanged. If the merger goes through, MetroPCS investors will still only have a 26% stake in the combined company, and its shares will be worth $4 each. However, MetroPCS shareholders may be willing to compromise. MetroPCS pushed back the shareholders meeting from April 12th to the 24th of this month to give shareholders a chance to consider the revised offer.

Analysts believe that DK’s improved offer will drive many shareholders to change their previous mindset and encourage them to vote in favor of the combined company. P. Schoenfeld Asset Management LP, one of MetroPCS’s major shareholders who was against the merger, stated that it was pleased with the revised offer and is conferring with its advisers about its position on the merger.

Along with T-Mobile merging with MetroPCS, DISH Network has reportedly spoken with Deutsche Telekom about another possible merger. DK stated that it would consider a merger with DISH when the MetroPCS deal closes. Merging with DISH Network as well would provide T-Mobile the much-needed boost it needs in order to compete with the other 3 major wireless carriers. The merger will also have a higher chance of being approved compared to the failed merger between T-Mobile and AT&T.

[via CNET]

MetroPCS encourages shareholders to vote for amended T-Mobile offer is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

DISH Network Chairman Charlie Ergen had reportedly approached Deutsche Telekom about a possible merger between DISH and T-Mobile USA. According to Bloomberg’s sources, DISH approached the company before it had approved an improved merger offer to MetroPCS. Deutsche Telekom said it might be interested in DISH’s offer, however it will only consider it once its merger with MetroPCS closes.

DT’s improved offer lowers the debt transferred to MetroPCS by $3.8 billion and it also reduces the interest rate of that debt by 0.5%. It also agreed to hold onto its shares for at least 18 months once the deal closes. MetroPCS pushed back Friday’s shareholders meeting to April 24th so that shareholders can consider the revised offer. P. Schoenfeld Asset Management LP, a major shareholder of MetroPCS who had been against the pending merger, was pleased by the new offer and is reconsidering its position.

DISH has wanted to break into the wireless industry for a while. It had conferred with many wireless companies about mergers, and has also considered starting its own wireless service, similar to Radio Shack. DISH even tried to purchase the remaining 49.6% of Clearwire. Now its looking to make a deal with T-Mobile in order to get its “in” in the wireless industry so that it can be more than just a satellite television company.

DISH would offer wireless/digital television bundles if it is able to secure a deal with T-Mobile. Currently, DISH Network has $10 billion in cash, making it the company with the largest cash pile compared to other U.S. television and phone providers, and also making it very capable of merging with T-Mobile. DISH’s potential merger with T-Mobile will be much more acceptable to regulators compared to AT&T’s attempted merger with the company. Unlike AT&T’s merger plans with T-Mobile, DISH merging with the company will not remove the 4th largest wireless carrier in the nation from the wireless industry, but instead reinforce its capabilities.

[via Bloomberg]

DISH reportedly approached Deutsche Telekom about a possible T-Mobile merger is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

It looks like Deutsche Telekom has revised its merger offer for MetroPCS to make it more appealing. There’s only 2 days left before MetroPCS’s shareholders decide whether or not the prepaid wireless carrier will be joining forces with T-Mobile USA. According to The Wall Street Journal, Deutsche Telekom approved a much better bid in order to convince MetroPCS shareholders to vote in favor of the merger.

The improved offer will reduce the amount of debt MetroPCS will be responsible for when the merger completes. It will also reduce the debt’s interest rate. Debt is one of the major factors holding back many of MetroPCS’s biggest shareholders from approving the deal. While Deutsche Telekom seems to have addressed that, there are several other factors that it needs to consider, including MetroPCS’s share in the merged companies, as well as the price of its shares.

When the deal goes through, MetroPCS will own only 26% of the merged company, and its shares will only be worth $4 each. Many proxy advisers, including Institutional Shareholder Services, an adviser to many major shareholders, has recommended that MetroPCS investors vote against the merger. The adviser, as well as many shareholders, have stated that MetroPCS has a chance of surviving on its own without T-Mobile’s help.

While Deutsche Telekom’s deal is a big improvement over its previous offer, it’s still uncertain whether or not shareholders will bite. Sources have told The Wall Street Journal that the meeting on April 12th could be pushed to a later date in order to give shareholders more time to consider the revised offer. Before news of the improved merger offer, the chances of a merger happening were looking pretty grim. T-Mobile USA needs MetroPCS in order to compete against the other major carriers, and in order to build out its LTE network. We’ll keep you updated on what happens at the merger meeting this Friday.

[via Wall Street Journal]

Deutsche Telekom approves improved merger offer for MetroPCS is written by Brian Sin & originally posted on SlashGear.
© 2005 – 2012, SlashGear. All right reserved.

Get ready for a small deluge of Galaxy S 4 filings at the FCC in the near future. Just a couple of weeks after Samsung’s flagship hit the US agency in its international guise, we’re now seeing the first US editions of the smartphone receive approval, starting with both MetroPCS (SCH-R970) and Sprint (SPH-L720) examples. Either has CDMA, EV-DO and LTE, although there’s variances you’ll want to watch for if you’re free to choose between carriers: the Sprint version has HSPA 3G for world roaming, while the MetroPCS model drops HSPA but has a broad four bands of LTE meant mostly to support other mid-size American networks, like US Cellular. We still have AT&T, T-Mobile and Verizon to go among the bigger US providers supporting the GS4, although it’s just a matter of time before their models make FCC appearances.

Filed under: Cellphones, Mobile, Samsung, Sprint

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Source: FCC (1), (2)