MetroPCS merger deal on the table with T-Mobile

The last time there was a merger talk that involved T-Mobile, it was with AT&T. We all know how that played out. It still worked out great for T-Mobile as a whole since they acquired a large sum of money and some much-needed spectrum. With the current state of affairs in the mobile industry though, T-Mobile needs to play all the cards they have to get back into a position of success. After dropping down the list on JD Powers, something has to give. T-Mobile, and their parent company Deutsche Telekom (DT), are hoping that a merge between T-Mobile USA and MetroPCS could be a great turning point that they need to boost themselves back up.

Both Metro PCS and DT have released statements on the merger talks.

“Deutsche Telekom is holding talks with the listed company MetroPCS with the aim of operating its subsidiary T-Mobile USA and MetroPCS within one company in which Deutsche Telekom would hold the majority of shares,” the carrier said on its Web site. “The talks are at a stage where significant issues have not yet been finalized, contracts have not yet been signed and the conclusion of the transaction is still not certain.”

“MetroPCS today confirmed that it is in discussions with Deutsche Telekom regarding an agreement to combine T-Mobile USA and MetroPCS.  There can be no assurances that any transaction will result from these discussions, and the Company does not intend to comment further unless and until an agreement is reached.”

So the talks are officially confirmed by both sides of the table. We didn’t catch wind of the proposed purchase price yet though. DT’s Supervisory Board is scheduled to meet tomorrow to approve the transaction. We don’t see how this purchase could hurt T-Mobile. It would bring on a slew of new customers along with various devices that MetroPCS has been able to lock down. Granted MetroPCS is a pre-paid business, but we can see some deals that could work customers off the monthly pre-paid options and onto contracts coming out.

What are your thoughts? Do you feel it is in T-Mobiles best interest to pick up Metro, or should they look more towards trying to merge with someone bigger?

Source: Bloomberg via TmoNews