TMUS Stock Alert: T-Mobile Announces $4.4 Billion Deal to Buy US Cellular

T-Mobile (NASDAQ:TMUS) stock is up today after the company signed a new deal to buy US mobile communications (NYSE:UZD). As part of the $4.4 billion transaction, T-Mobile will acquire most of US Cellular, including the company’s businesses, assets and customers.

As part of the deal, T-Mobile will put up both cash and up to $2 billion in debt. T-Mobile will get about 30 percent of US Cellular’s wireless spectrum, which the company plans to use to improve its coverage in more rural parts of the country. According to the deal, current US Cellular customers will have the option of keeping their current plans or switching to T-Mobile plans.

T-Mobile CEO Mike Sievert praised the deal:

“This deal will create an opportunity for T-Mobile to offer millions of UScellular customers lower prices and the Un-carrier’s superior value on our world-class, nationwide 5G network, providing much-needed choice and more real competition across the wireless industry.”

US Cellular will retain approximately 70% of its cell towers, of which at least 2,100 will be leased to T-Mobile. T-Mobile has the option to sign new leases on more than 2,000 towers and extend leases on an additional 600.

As a result, US Cellular customers will continue to receive support for at least 15 years after the transaction closes.

TMUS shares rise after takeover of US Cellular

Today’s news is a follow-up of sorts to T-Mobile’s purchase of Mint Mobile’s parent company Ka’ena for $1.35 billion, which the U.S. Federal Communications Commission approved just last month. If you recall, T-Mobile also merged with Sprint in 2020, which was a whopping $26 billion boost.

Earlier this month, The Wall Street Journal reported that Verizon (NYSE:VZ) would also participate in the takeover of US Cellular. However, it is unclear whether the company will still be involved at a later date.

Sievert said of the transaction:

“By combining UScellular’s network resources with ours, we can close gaps in connectivity, providing a better experience for all of our customers with more coverage and more capacity. And that’s just part of the benefits this deal brings. This will be a real win for consumers across the U.S.”

TMUS stock is seeing modest gains following this news. In fact, TMUS stock is up about 0.9% at the time of writing, while UZD stock is seeing more significant gains, up 17.5% in the afternoon.

The deal is expected to close in mid-2025.

At the time of publication, Shrey Dua did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.