Deutsche Telekom, the chief executive of the German telecoms company, now holds a majority in T-Mobile U.S., it confirmed on Wednesday.
The company achieved a majority stake in T-Mobile U.S. late on Tuesday, CEO Tim Hottges said at the company’s annual general meeting.
“We have the majority and are the largest shareholder of the world’s most valuable telecommunications company, T-Mobile U.S.,” he said.
Since 2013, the value of T-Mobile U.S. has increased by about $167.44 billion; Deutsche Telekom estimated that the benefits of this transaction, between $7.2 and $7.5 billion, will greatly outweigh the costs, amounting to less than $1 billion in 2023.
T-Mobile has enjoyed outstanding success in the United States marketing, as they had been a long-standing underdog to Verizon and AT&T, and had finally become a contender as they pushed for their “uncarrier” marketing concept, including a number of free services with affordable phone plans. After they merged with Sprint, T-Mobile was really able to solidify its position in the mobile communications market.
T-Mobile has maintained an upward trajectory, and it is expected to continue to grow in 2023. A financial analyst at TD Cowen stated: “T-Mobile remains among our top ideas.” The company is expected to gain around 500,000 new phone customers in the first quarter, based on a report from lightreading.com.
Foreign ownership of United States telecom companies isn’t a new concept, Japan’s Softbank has an ownership position in Sprint, having purchased it all the way back in 2013.