Sprint, T-Mobile officially reach merger deal

Posted at 12:04 PM, Apr 29, 2018
and last updated 2018-04-30 18:10:54-04

OVERLAND PARK, Kan. -- Sprint and T-Mobile officially announced their plans to merge in a tweet Sunday.

In a press release, the two companies said the combined company will keep the name of T-Mobile. It plans to employ more people than both companies could separately and create thousands of new jobs.

The new company will be headquartered in Bellevue, Wash., with a second headquarters at Sprint's headquarters in Overland Park.

In a seven-minute video posted as part of the announcement, T-Mobile's Legere and Sprint CEO Marcelo Claure took turns detailing what the combined company will look like.

They promised the new company will invest more than $40 billion in the next three years as part of a plan build out a nationwide 5G network.

The announcement is the culmination of a years-long dance to pair the two companies. Rumors of the merger picked up again last week, but that was only after the merger talks were squashed in late 2017.

Kansas City-area lawmakers reacted to the weekend news, acknowledging Sprint's impact in Kansas and the opportunity for growth the merger brings.

"Sprint has had a big impact across the state. They’ve been a part of the state fabric for more than 50 years as other companies. Now that they’ve evolved into this merger, I think it brings more technology to our community and allows us to continue to grow here in the Midwest," Kansas Gov. Jeff Colyer said.

Kansas Senator Jerry Moran tweeted his response, saying that while he supports the companies' economic development and encourages them to continue growing in Kansas, as Chairman of the Commerce Subcommittee, he plans to closely monitor the merged entity in the future.

President and Chief Executive Officer John Legere will serve as the new company's Chief Executive Officer. Sprint's Chief Executive Officer Mike Sievert will serve as the new company's President and Chief Operating Officer.

The remaining members of the new leadership team will be chosen from both companies during the closing period.

Sprint and T-Mobile said they hope this move allows them to launch nationwide 5G network and increase competition.