What's Going On With T-Mobile Stock Tuesday?

Zinger Key Points
  • T-Mobile announces it will acquire nearly all of UScellular's wireless operations.
  • T-Mobile customers will receive access to UScellular's networks in regions that previously experienced limited coverage.

T-Mobile US, Inc. TMUS shares are moving higher Tuesday. The company agreed to acquire nearly all of UScellular USM‘s wireless operations.

What Happened: T-Mobile announced Tuesday that it will acquire nearly all of UScellular’s wireless operations, including UScellular’s wireless customers and stores, for approximately $4.4 billion. The deal will expand T-Mobile’s network to millions of new customers including those in underserved rural areas.

T-Mobile will finance the transaction with a combination of cash and up to $2 billion of debt to be assumed by T-Mobile through an exchange offer to be made to certain UScellular debtholders prior to closing. 

T-Mobile customers will receive access to UScellular’s networks in regions that previously experienced limited coverage. In addition, customers will benefit from enhanced performance throughout UScellular’s footprint due to the addition of UScellular spectrum to T-Mobile’s network.

“With this deal T-Mobile can extend the superior Un-carrier value and experiences that we’re famous for to millions of UScellular customers and deliver them lower-priced, value-packed plans and better connectivity on our best-in-class nationwide 5G network,” said Mike Sievert, CEO of T-Mobile.

“As customers from both companies will get more coverage and more capacity from our combined footprint, our competitors will be forced to keep up – and even more consumers will benefit.”

T-Mobile noted that it does not expect the transaction to impact the company’s 2024 guidance.

Related Link: If You Invested $1000 In Apple When It Acquired Siri 14 Years Ago, Here’s How Much You’d Have

TMUS Price Action: At the time of publication, T-Mobile shares were up 0.63% at $167.14, per data from Benzinga Pro.

Image: 8723233 from Pixabay.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsMoverswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!