Kids move so fast these days! Just yesterday we noted how T-Mobile was busy wooing MetroPCS, as its parent company Deutsche Telekom was hoping the company could just move on from that whole “jilted at the altar by AT&T and the DOJ” thing. And now (cue the knowing “ooooohs“) the board of MetroPCS says it’s all in favor of merging with T-Mobile. But how will it find a dress in time?!?!?
The news comes from a German newspaper, Financial Times Deutschland (via Reuters) and cites people in the know who say this crazy couple might just have what it takes to make it in the telecom world. As long as they hold tight to each other and never let go. This is better than a rom-com!
MetroPCS agreed to Deutsche Telekom’s dowry conditions for T-Mobile, which means the German company will hold on to 74% and MetroPCS will get 26% of the combined entity. Two becoming one, and all that. Deutsche Telekom will also need to approve the plan, which should happen because it was the one who proposed it in the first place.
Also part of the dowry is $1.5 billion in cash MetroPCS will receive, and it’s being whispered that the happy couple wants to make things really official by listing the new company on the stock exchange. Aww! Is this just a marriage of convenience or is it true love? It’s just like Downton Abbey.
As we’ve discussed before, other mergers have been frowned upon by consumer advocates and telecom critics, as they’ve resulted in the four big companies basically running all over the rest of the little guys. But this particular union could result in yet another viable, practical choice for wireless customers. We’ll hold our breath until the Chicken Dance begins at the reception.