T-Mobile and Sprint have agreed to merge in what will reportedly be a $26 billion deal. The companies’ two CEOs, T-Mobile’s John Legere and Sprint’s Marcelo Claure, announced the impending merger with a seven-minute explainer video pitching the potential 5G capabilities and job growth the combined companies could bring.
If the deal passes regulators, the company will be called T-Mobile and will have Legere at the helm. The new iteration of T-Mobile would narrow the telecom space even further and position the company against market leaders Verizon and AT&T.
“This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience—and do it all so much faster than either company could on its own,” said Legere in a statement. “As industry lines blur and we enter the 5G era, consumers and businesses need a company with the disruptive culture and capabilities to force positive change on their behalf.”
Headquarters for the new company will be in Bellevue, Wash. The second headquarters will be in Overland Park, Kan. T-Mobile COO Mike Sievert will become the president and COO of the new company. High ranking executives from Sprint, including SoftBank Group Chairman and CEO Masayoshi Son, and Sprint CEO Claure, will serve on the board of the new company. T-Mobile U.S. chairman of the board Tim Höttges will become the chairman of the new board.
It’s unclear what this merger means for the marketing teams of Sprint and T-Mobile. A CMO for the merged company has not been announced and, in a release, the companies said the remaining members of the new T-Mobile’s management team would be revealed after the deal closes.
Last September, T-Mobile named Mother New York its creative agency while still retaining its agency of record relationship with Publicis Seattle. Sprint works with Droga 5.
Representatives for T-Mobile, Sprint, Mother New York, Publicis Seattle and Droga5 did not immediately respond to requests for comment.