TMUS - T-Mobile And UScellular Transaction: Everybody Wins
2024-05-28 16:30:34 ET
Summary
- T-Mobile is purchasing UScellular's wireless business and 30% of spectrum for $4.4 billion in consideration with the deal expected to close in mid-2025.
- T-Mobile is receiving an excellent deal on the assets while UScellular still has solid cash flow streams and additional spectrum assets to monetize.
- While there is downside risk from government approval, the upside potential is strong enough to rate both stocks a solid buy.
T-Mobile (TMUS) announced today, Tuesday, May 28th, that they will acquire the wireless business and 30% of United States Cellular's (USM) spectrum holdings for $4.4 billion. Note there is also a significant impact on Telephone and Data Systems (TDS) as they own 83% of US Cellular. This will comprise of cash and up to $2.0 billion of US Cellular's debt. Pending regulatory approval, the deal is expected to close in mid-2025....
T-Mobile And UScellular Transaction: Everybody Wins