Mobile operator MetroPCS has become the frontrunner to acquire assets from AT&T and T-Mobile USA as the two companies push for approval for their merger, according to a Bloomberg report. Citing sources familiar with the matter, Bloomberg reported that…
Mobile operator MetroPCS has become the frontrunner to acquire assets from AT&T and T-Mobile USA as the two companies push for approval for their merger, according to a Bloomberg report.
Citing sources familiar with the matter, Bloomberg reported that the size of the deal is not definite, but it will likely involve spectrum and subscribers. One source said that the deal value would be less than US$4bn.
According to the report, AT&T has already approached another mobile operator, Leap Wireless, and satellite TV provider Dish Network. AT&T is reportedly still in talks with Leap.
One source also reportedly said that Deutsche Telekom was willing to help MetroPCS finance the deal.
AT&T, Deutsche Telekom and MetroPCS all declined to comment.
Dallas-based MetroPCS has 9.1 million subscribers according to its Q2 results. Net income for the three months to the end of June was US$84m, up 6% from the same period last year.
In a note responding to the Bloomberg report, Credit Suisse analyst Jonathan Chaplin suggested several reasons that MetroPCS might be looking to acquire assets from AT&T.
“1) [T]hey urgently need more spectrum; 2) they could deploy divested spectrum more easily and quickly than some of the alternatives that they are looking at; 3) they have put $2BN of liquidity in place expressly for spectrum purchases, and; 4) they have said publicly that they have been in talks with AT&T,” Chaplin said.
